These strangers will hound you to buy stocks in small, unknown companies that are highly risky, or sometimes, part of a scam. Aggressive cold callers speak from persuasive scripts that include retorts for your every objection. As long as you stay on the phone, they'll keep trying to sell. And they won't let you get a word in edgewise. If the deal sounds too good to be true, then it probably is.
Some cold callers wait before turning up the heat.
In their first call they'll try to build your trust by describing their firm's past successes and the high quality of its research. In their second call they'll whet your appetite, telling you about a fabulous deal they think they can get you into. Dishonest brokers lure new customers by encouraging them to purchase well known, widely traded blue chip stocks. After you take the bait, they may pressure you to invest in small, unknown companies with little or no earnings. These stocks tend to be very risky and thinly traded, leaving more investors with losses than profits.