PONZI SCHEMES; SCHEME WHICH CAN BE A NIGHTMARE!!!!!!!
- A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors.
- It is a fraudulant scam which generates returns for earlier investors with money taken from later investors.
- when the flood of new investors dries up and there isn't enough money to go around. At that point, the schemes unravel.
MORE IDEAS FROM THE ARTICLE
- A guaranteed promise of high returns with little risk
- A consistent flow of returns regardless of market conditions.
- Investments that have not been registered with the Securities and Exchange Commission (SEC)
- Investment strategies that are secret or described as too complex to explain
- Clients not allowed to view official paperwork for their investment
- Clients facing difficulties removing their money.
- Similar to a pyramid scheme, the Ponzi scheme generates returns for older investors by acquiring new investors, who are promised a large profit at little to no risk.
- Both fraudulent arrangements are premised on using new investors' funds to pay the earlier backers.
- Companies that engage in a Ponzi scheme focus all of their energy into attracting new clients to make investments.
- the first step would be trying to get your money back.
- Do not invest any more money unless your doubts have been resolved.
- Keep a Check on your greed and take all the due diligence steps before you go any further with the scheme.
- report the business to the authorities.
RELATED IDEAS
They are all basket of assets you are trading in bulk:
- Mutual funds are actively managed, meaning their fees are rather high.
- Index Funds are just tracking a segment of the market. Low fees but are only priced once a day. It's the preferred passive investment strategy.Ā
- ETF are like a combination of the two. They are more versatile & usually track industries, commodities etc. ETFs are more akin to equities than to mutual funds. They can be bought like individual stocks.Ā
Investing is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Investing is a means to a happier ending.
The goal of investing is to put your money to work in one or more types of investment vehicles in the hopes of growing your money over time.
Investing is about laying out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.
Most of the time, this is best achieved through the acquisition of productive assets.
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