From d33313830ae52566491c225a742bcca9e5ea3776 Mon Sep 17 00:00:00 2001 From: Gerald Bauer Date: Tue, 5 Jan 2021 19:28:23 +0100 Subject: [PATCH] Update README.md --- README.md | 6 ++++++ 1 file changed, 6 insertions(+) diff --git a/README.md b/README.md index ccb2c2b..c64e98a 100644 --- a/README.md +++ b/README.md @@ -133,6 +133,12 @@ Find more in [**`Nouriel_Roubini.yml` »**](Nouriel_Roubini.yml) ### SEC Investor Education +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. + + § + 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,