Actual examples of "sales scripts" used by unscrupulous stockbrokers.
Sometimes in the course of preparing our cases we have been able to obtain "sales scripts" which
stockbrokers have used to push worthless stock on unsuspecting investors. "sales scripts" are written by individual stockbrokers, a stock promoter or management and given to stockbrokers to help them open accounts and sell stock. These sales scripts were used at a brokerage firm that has since gone out of business in part due to regulatory pressures and law suits from investors who were defrauded by the firm's fraudulent practices and illegal manipulation of small stocks.
If you ever receive a call from someone like this hang up the phone or contact your state securities commissioner (note typos and other mistakes have not been corrected from the original scripts).
Script 1:
Mr. ___________, We've been on the phone for 10 minutes now and you sound like a hell of a nice guy. Let me ask you a question. Why is it that 90% of the people who invest in the market lose money or see mediocre results? Why do Warren Buffets, the Carl Ichon's why are they always the ones who seem to make the money?
I'll tell you why. It's because they deal with the right people who are very well connected.
Believe me. I am one of those people. I have connections all over the street. You name the firm
and BELIEVE ME, I know someone there.
I know how you feel. I am a couple thousand miles away, you don't know me, and we've never done business together. I can appreciate that. Perhaps you've lost money in the past with other brokers, and you're annoyed, and you know what, I'm a little annoyed too because it makes my job 10 times harder than it has to be.
Mr. __________, if you work with me on _____ shares of __________ you will be doing so much more than buying a small piece of a phenomenal company. You'll be buying a broker who really cares about his clients. BELEVE ME, I am at my office every day at 7:30 in the morning breaking my ass to make money for my clients. I don't leave until 10 at night this business means everything to me.
Do this go with me on __________ shares.
Sales Script #2
Mr. ____________, I deal with the most sophisticated investors, presidents and CEO's of major
public corporations from Maine to California.
Over the next twelve months you are going to realize this was the best call you've ever gotten
from a broker. You're going to thank me for giving you the little push you need today. Give me
the shot, and you'll be very, impressed.
Go with 200 shares.
Sales Script #3
I'm about to tell you something that nobody on Wall Street will ever tell you, my commission on 1 share or 10,000 shares is $75. I split that with the firm and the government. FEDEX packages to you both ways are at my expense. I can't even afford to park my car downstairs on this trade.
I would have to be out of my mind to put you into a stock that I felt traded even a point lower unless I was convinced I was right.
I know you get calls all the time from Shearson, Merrill Lynch, Payne Weber, Dean Witter, all the
major wire houses who are losing money for their clients left and right. They ask for 50,000 or
100,000. They whack you for a large commission, win ,lose, or draw. Stock goes up, down or
trades flat - who really wins?
Exactly.
What's my motivation? I'm a block trader in NY. What's my motivation to work with you on ________ shares for $75 commission unless I was absolutely convinced I was totally right.
Do this, go with me on __________ shares.
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