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Create SEC_Investor_Education.yml
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geraldb authored Jan 5, 2021
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A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors.
Ponzi schemes are named after Charles Ponzi. In the 1920s, Ponzi promised investors a 50% return
within a few months for what he claimed was an investment in international mail coupons.
source: https://www.investor.gov/introduction-investing/investing-basics/glossary/ponzi-schemes

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Ponzi Schemes. With little or no legitimate earnings,
Ponzi schemes require a constant flow of new money to survive.
When it becomes hard to recruit new investors,
or when large numbers of existing investors cash out,
these schemes collapse.
source: https://www.investor.gov/introduction-investing/investing-basics/glossary/ponzi-schemes

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Ponzi scheme "red flags" - High returns with little or no risk:
Every investment carries some degree of risk,
and investments yielding higher returns typically involve more risk.
Be highly suspicious of any "guaranteed" [number-go-up to-the-moon] "investment" opportunity.
source: https://www.investor.gov/protect-your-investments/fraud/types-fraud/ponzi-scheme

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Ponzi scheme "red flags" - Avoid too-good-to-be-true "investments" with claims like:
- "To the moon! To the mars!"
- "Number go up!"
- "Yearly return of 300+% in 2020!"
- "Could quadruple in 2021 and rally to $100,000!"
soure: https://www.investor.gov

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