What does ponzi scheme mean?
Definitions for ponzi scheme
ponz·i scheme
This dictionary definitions page includes all the possible meanings, example usage and translations of the word ponzi scheme.
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Wiktionary
Ponzi schemenoun
A Ponzi scam.
Etymology: From Charles Ponzi, who famously conducted a pyramid scheme in North America in the early twentieth century.
Wikipedia
Ponzi scheme
A Ponzi scheme (, Italian: [ˈpontsi]) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are coming from legitimate business activity (e.g., product sales or successful investments), and they remain unaware that other investors are the source of funds. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new funds, and as long as most of the investors do not demand full repayment and still believe in the non-existent assets they are purported to own. Some of the first recorded incidents to meet the modern definition of the Ponzi scheme were carried out from 1869 to 1872 by Adele Spitzeder in Germany and by Sarah Howe in the United States in the 1880s through the "Ladies' Deposit". Howe offered a solely female clientele an 8% monthly interest rate and then stole the money that the women had invested. She was eventually discovered and served three years in prison. The Ponzi scheme was also previously described in novels; Charles Dickens's 1844 novel Martin Chuzzlewit and his 1857 novel Little Dorrit both feature such a scheme.In the 1920s, Charles Ponzi carried out this scheme and became well known throughout the United States because of the huge amount of money that he took in. His original scheme was based on the legitimate arbitrage of international reply coupons for postage stamps, but he soon began diverting new investors' money to make payments to earlier investors and to himself. Unlike earlier similar schemes, Ponzi's gained considerable press coverage both within the United States and internationally both while it was being perpetrated and after it collapsed – this notoriety eventually led to the type of scheme being named after him.
Wikidata
Ponzi scheme
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 profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going. The scheme is named after Charles Ponzi, who became notorious for using the technique in 1920. Ponzi did not invent the scheme, but his operation took in so much money that it was the first to become known throughout the United States. Ponzi's original scheme was based on the arbitrage of international reply coupons for postage stamps; however, he soon diverted investors' money to make payments to earlier investors and himself.
Numerology
Chaldean Numerology
The numerical value of ponzi scheme in Chaldean Numerology is: 8
Pythagorean Numerology
The numerical value of ponzi scheme in Pythagorean Numerology is: 7
Examples of ponzi scheme in a Sentence
He took new money from new investors and used that money to pay old ones. So, there was nothing that was generated. There was no value that was created. Nothing that he did that added value or added money back for investors and that is basically what a Ponzi scheme is.
At one point, Bernie Madoff cornered the hot chocolate market, bernie Madoff bought up every package of Swiss Miss from the commissary and sold Swiss Miss for a profit in the prison yard. Bernie Madoff monopolized hot chocolate ! Bernie Madoff made Swiss Miss so that if you wanted any, you had to go through Bernie Madoff. Bernie Madoff, once the Nasdaq chairman, used Bernie Madoff reputation and savvy to dupe sophisticated investors, regulators and Wall Street banks. Bernie Madoff confessed in December 2008 that Bernie Madoff was running a multi decade Ponzi scheme and that more than $ 65 billion Bernie Madoff claimed to have on hand for investors had dwindled to a few hundred million dollars from an original investment of about $ 20 billion. Bernie Madoff pleaded guilty to fraud and is serving a 150-year prison sentence in Butner, N.C. Fishman reportedly hosts an Audible series called.
In other words, he had the telltale signs of a Ponzi scheme.
I would hope that as a community we are learning to ask more questions about meteoric financial rises, yet I'm uncertain if anything has really changed (after Rothstein)," said Kendall Coffey, a former U.S. attorney who represented Rothstein's law firm after the Ponzi scheme was uncovered.
As alleged in the indictment, however, BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors.
Translations for ponzi scheme
From our Multilingual Translation Dictionary
- مخطط بونزيArabic
- Ponziho schémaCzech
- Ponzi-SchemaGerman
- ponzi-skemoEsperanto
- esquema ponziSpanish
- طرح پونزیPersian
- Ponzi-huijausFinnish
- schéma de PonziFrench
- scéim ponziIrish
- पॉन्ज़ी योजनाHindi
- ponzi-sémaHungarian
- ponzi սխեմա� Armenian
- skema ponziIndonesian
- schema ponziItalian
- ערכת פונזיHebrew
- ねずみ講Japanese
- ಪೊಂಜಿ ಯೋಜನೆKannada
- 폰 지사 기법Korean
- ponzi-schemaDutch
- ponzi-ordningenNorwegian
- schemat PonziegoPolish
- esquema PonziPortuguese
- schema ponziRomanian
- схема ПонциRussian
- போன்சி திட்டம்Tamil
- పోంజీ పథకంTelugu
- โครงการ PonziThai
- Ponzi şemasıTurkish
- схема понціUkrainian
- پونزی سکیمUrdu
- kế hoạch ponziVietnamese
- פּאָנזי סכעמעYiddish
- 龐氏騙局Chinese
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"ponzi scheme." Definitions.net. STANDS4 LLC, 2024. Web. 29 Apr. 2024. <https://www.definitions.net/definition/ponzi+scheme>.
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