Boiler Room

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Boiler Room
In the film Boiler Room a young man joins a risky stock brokerage firm. As he makes his way to the top of the chain in this hot new firm he comes to realize its not a legitimate nor legal business they’re running. In this “chop shop” many laws are bended and broken in order for them to make the easier faster buck. The most successful way they earn cash crookedly is with bridge financing. With every sale the brokers earn more than a 5% rip, which is against SEC regulations. Another rule they break routinely is the act of lying for just about everything. When these crooked tactics are put to use they sometimes come out on top. Other times they’ll crash and burn along with the person they sell to.

When the firm guys get the hunger for money they’re ferocious, each one out to make some cold hard cash fast. And the fastest and easiest way to do that is with bridge financing. This is what the whole firm is based on, a system in which they sell stock to people for a company that isn’t on the market yet. They build up income from those shares and let the market crash afterwards. In this chop shop its very unlikely that investors will make money off the stocks. With this method though these guys are making incredible profit because they always have cash coming in but no cash going out. They also take bigger rips from the shares than they should.

With every sale a stockbroker can earn up to 5% of each share. These guys are taking more than they can handle on each share, which increases their profit on each sale. Then firm makes most all its business by handling bum stocks then taking a bigger rip than any other firm. With each transaction comes a lot of cash toward the individual Broker that handled the deal. In order for these guys to get a bum deal out in the open is lie through there teeth.

In most all dealing with the bum stocks, the brokers of the chop shop would lie to each customer to try and get them to keep buying shares. Each guy had a...
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