Ayuba Ernest
Banned
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profits generated by the scheme. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, with the underlying assumption that the scheme will be able to generate enough income to cover any payments made to earlier investors. When this fails, the scheme collapses.
The best way to identify a ponzi scheme is to look for certain red flags. If you see any of these signs, it's best to stay away:
1. The company is asking for money up front.
2. The company is promising high returns with little or no risk.
3. The company is not registered with the SEC.
4. The company is not licensed to do business in your state.
5. The company is not transparent about where your money is going.
6. The company is not responsive to questions or concerns.
If you do all this, you can avoid ponzi scheme or avoid being scammed by one. Thank you for reading and do share your thoughts.
The best way to identify a ponzi scheme is to look for certain red flags. If you see any of these signs, it's best to stay away:
1. The company is asking for money up front.
2. The company is promising high returns with little or no risk.
3. The company is not registered with the SEC.
4. The company is not licensed to do business in your state.
5. The company is not transparent about where your money is going.
6. The company is not responsive to questions or concerns.
If you do all this, you can avoid ponzi scheme or avoid being scammed by one. Thank you for reading and do share your thoughts.