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单词 Ponzi scheme
释义
Ponzi scheme

Internet
  • An Internet scheme based on asking investors to send money to the person running the scheme. He or she then promises to pay a very high interest rate or very high profits. However, such payments are paid for a short time, usually from funds paid by other later investors. Such schemes collapse quickly.


Economics
  • A fraudulent investment scheme that pays a return to current investors using their own investment or funds from subsequent investors. A Ponzi scheme attracts investors by promising returns that are high relative to alternative investments. The promised returns can only be paid if the flow of new investment is sufficiently great. Since this cannot be sustained in the long run a Ponzi scheme must inevitably collapse. The Ponzi scheme operated by Bernard Madoff is estimated to have lost investment totalling approximately $18 billion.


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