Ponzi

usgb/ˈpɑn.zi/
noun

A ponzi scheme is a form of investment fraud that pays returns to earlier investors with the capital from new investors, rather than from profit earned by the operation of a legitimate business.

Many investors lost their savings in the notorious Ponzi scheme.
Visual representation of "ponzi" - A ponzi scheme is a form of investment fraud that pays returns to earlier investors with the capital from new investors, rather than from profit earned by the operation of a legitimate business.

Usage tips

Formal

Ponzi scheme,Ponzi investor,Ponzi fraud

Definition 1 of 1
Visual representation of "ponzi"
LampPro Tip 1/3

Fraud Awareness

Understand the characteristics of Ponzi schemes to avoid scams.

Illustration for Fraud Awareness
Many people get trapped due to lack of awareness about how such schemes operate.
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Investment Superficiality

Recognize that high returns with little risk are often warning signs.

Illustration for Investment Superficiality
If it sounds too good to be true, it probably is.
LampPro Tip 3/3

Financial Literacy

Boost your financial education to spot risky investments.

Illustration for Financial Literacy
Knowledge about finance can protect you from fraudulent schemes.
Visual representation of the word "Ponzi"

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