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Ponzi Schemes Essays

Discuss How a Ponzi Scheme Works

A Ponzi scheme refers to a form of fraudulent investment where investors are enticed with little risk and high rates of return. Instead of paying off the old investors from the profits of their investments, a Ponzi scheme uses the funds raised from new investors. The scheme depends on a steady intake of new investors ... Read More
Pages: 5       Words: 1301

Understanding Ponzi Schemes and Investment Decisions

How the Ponzi scheme began and worked According to Chen (2021), the Ponzi scheme originated in 1920 and was named after Charles Ponzi, a fraudster through a security exchange company at the US postal service. The system is a fraud that promises investors significant returns with minimal risk. Returns for existing investors are paid using ... Read More
Pages: 3       Words: 612
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