What do we now refer to Ponzi's fraudulent investment scheme as?
Arbitrage
Ponzi scheme
Miller scheme
Bubble scheme
Answer
A Ponzi scheme is a fraudulent investment scheme in which early investors are paid with the money invested by more recent investors. Instead of investing and generating profits, the scheme operator simply uses the money from later investors to pay earlier ones. This practice usually ends with the operator disappearing and investors losing their money. Ponzi schemes rely on a constant flow of new investors to keep the scheme going.
Ponzi Scheme Prodigy: The Charles Ponzi Quiz
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