HOW IT ACTUALLY WORKS!🤔🤔

HOW IT ACTUALLY WORKS!🤔🤔

  • 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.
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@shafinhakim

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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.
DO THIS IF YOU ARE STRUCK IN ONE!!
  • 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.
HOW TO IDENTIFY A FAKE ONE!!!
  • 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.

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ETFs vs Index & Mutual Funds

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. 
  • 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. 

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Money

What Is an Inverse ETF?

An inverse ETF is an exchange traded fund (ETF) constructed by using various derivatives to profit from a decline in the value of an underlying benchmark. Investing in inverse ETFs is similar to holding various short positions, which involve borrowing securities and selling them with the hope of repurchasing them at a lower price.

An inverse ETF is also known as a "Short ETF" or "Bear ETF."

Investing and Trading

When it comes to wealth creation in equity market, investing and trading are the two genres of the field. However, investing and trading are very different approaches of wealth creation or generating profits in the financial market. Imagine, today, you and your friend bought equal amount of seeds to sow in your fields but you sold them to someone in a day because you could earn profit. And your friend sowed the seeds and let them grow for a few years till they gave new seeds. He sowed the new seeds and continued this for years and sold a lot more seeds eventually than were bought.

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