Ponzi scheme: what is it?

@icecubic (1851)
Indonesia
November 22, 2009 5:47pm CST
I have ever found that words in many economic articles. It said that it's the illegal method in bussiness marketing since just gives a benefits to one side. What is it? Is it like pyramid scheme as many multilevel marketing have did?
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1 response
spalladino
@spalladino (17925)
• United States
23 Nov 09
A Ponzi scheme is an investment scheme, similar in many ways to a pyramid scheme. Investors are lead to believe that their investments are earning money but, in reality, the returns they receive are either another investor's money or their own. The person running the scheme usually pockets most, if not all, of the money and submits fake reports to the investors in order to keep them in the dark.