File:Charles_Ponzi.jpg · Wikimedia Commons · See Wikimedia Commons
AI overview
A Ponzi scheme is a fraudulent investment where money from new investors is used to pay returns to earlier investors, rather than from actual profits. It matters because it inevitably collapses when new investor money runs out, leaving most participants with substantial losses.
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Wikidata facts
- Subclass of
- pyramid scheme
- Named after
- Charles Ponzi
- Based on
- pyramid scheme
Show 1 more fact
- Commons category
- Pyramid and Ponzi schemes
Sources (1)
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