BUCKET SHOP

  1. Fraudulent brokerage firm employing aggressive telephone sales technique to sell securities the brokerage owns and no longer wants to hold. Normally, these securities are almost penny stocks and have poor investment opportunities. Sometimes known as boiler room.
  2. Brokerage which carries out trades of their client and promises a particular price, but waits until another price emerges and then enters the trade. They generate profit from its difference.