Boiler,Room,Normal,false,Micro business, insurance Boiler Room
As we all know to live in this world we have to perform some activity by which we can earn money. There are many activities by which we can earn money and meet the standards to live in this society. And from one of them is franchise. Franc Small offices have unique needs, and thatincludes document shredding. Designed with the smaller business inmind, the Dahle 20314 is a cross-cut shredder that offers Level 3security and brings you into compliance with federal regulations. The
Normal 0 false false false MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Times New Roman";mso-ansi-language:#0400;mso-fareast-language:#0400;mso-bidi-language:#0400;}A boiler room in business is some sort offraud, where the term boiler room refers to a hot focus of activity, oftenselling questionable goods by telephone. It usually means a room where salesmenwork using unfair, dishonest sales techniques, sometimes selling penny stock orcommitting outright stock fraud. The term has a negative meaning, and is oftenused to imply high-pressure sales techniques and sometimes, poor workingconditions.Business structureA boiler room usually has a hidden relationshipwith the company being promoted or hidden profit from the sale of the housestock they are promoting. When a small company needs financing, it looks to aninvestment bank to raise capital. Usually this is a legal procedure but mostboiler rooms perform this function for fake companies. After the managers ofthe boiler room invest money via the phony company or shell, they can either(A): Underwrite an initial public offering (IPO) or (B): back the phony companyinto a "shell" an out of business company that is no longer working,usually on the OTC Bulletin Board or the Pink Sheets that carry many small andthinly traded stocks.The managers of the boiler room usuallyhave close connections to the same owners of the company whose stock is beingpromoted. After the sales force of the boiler room sells their clients on theidea of the IPO, they can not sell the shares that the customer invested, simplybecause there is no actual "market" for the shares, so any sharessold for buyers are gathered so it would create a large loss in the price ofthe stock, due to it being thinly traded with no public support. Once the spyinginvestors are in place, a boiler room promotes (via telephone calls tobrokerage clients or spam email) these thinly traded stocks where there is no realmarket. The brokers of the boiler room typically "create" a market byattracting buyers, whose need for the stock increases the price; This gives theowners of the company enough space to sell their shares at a profit, a form ofpump and dump operation where the original investors profit on the account of theinvestors taken in by the boiler room operation.The U.S. Securities and ExchangeCommission paints the following picture; The brokers sat crowded in a room the size of abasketball court. All of their desks were lined up side by side in rows. Thefirm held mandatory sales meetings every morning at 8:30 a.m. at which time sales techniques weredemonstrated and scripts for the firm's "house stock" . . . weredistributed. Brokers should follow the scripts and only give customers theinformation they Article Tags: Boiler Room, Sales Techniques, Thinly Traded
Boiler,Room,Normal,false,Micro