in the movie boiler room, how exactly did the scheme work?
Posted by Machiavelli on :
I havent watched the movie in awhile.. but i think the scheme was a classic pump and dump... for non existent companies.. the company he worked for issued IPO's for companies that didnt exist except on paper.. the brokerage would own shares in the ghost company... have their brokers sell the rest of the shares to their clients to drive the price up... then at a predetermined price the brokerage would dump (sell to unsuspecting investors) their own shares at a profit the stock would collapse in price leaving the small guy investor holding worthless stock shares not worth the paper printed on so to speak... hope i remembered the movie right... maybe ill watch it again this weekend i have it on video...
Posted by usmcir0nfist on :
And the Brokers (if you want to call them that, I would call them hustlas) would get a 2 rip, or commission on each share or trade, I can't remember which, I think it might have been share. So all the brokers who were selling were making millions as was the company.