What did Kreuger use to pay early investors in his scheme?
Gold
Stocks
Their own money
Real estate
Answer
Their own money was used by Kreuger to pay early investors in his scheme. This was a Ponzi scheme, where early investors were paid with money from new investors, rather than from actual profits. As long as new investors kept coming in, the scheme could continue, but once the flow of new money stopped, the scheme collapsed, leaving many investors with significant losses.
Mastermind or Mogul: The Intriguing Tale of Ivar Kreuger
More Questions
Which continent did Kreuger not negotiate match monopolies with?
What year did Kreuger co-found Kreuger & Toll Byggnads AB?
What was a major cause of the collapse of Kreuger's financial empire?
What did Kreuger's brother Torsten claim about his death?
What type of literature did the controversy over Kreuger's death spawn?
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