How to know i am in a ponzi scheme.
We all want to win, but how are you doing it.
Ponzi schemes.
I understand that we all love to invest money in the so called surefire investments that give huge returns.
Caution:
If any brokerage-dealer firm is offering such deals, please exercise caution. You are set for a huge disappointment in your lifetime Investment career. The kind of disappointment that has taken away tens of billions of pounds from investors for more than a century now.
The Ponzi scheme type of business/program is one that promises.
• Incredible returns.
• Reliable quick operations
Believe me they will deliver for a while but remember they are not investing anywhere and are set for collapse sooner or later. They only can stay in operation due to those funds brought in by the new recruits (investors) to pay the older investors. Eventually, well it’s self explanatory.
By now you should be aware of the original engineer of the ‘Ponzi’ himself Charles Ponzi. The alleged and historically popular perpetrator of the Ponzi Investment business or the hedge fund manager Bernie Madoff.
Madoff was convicted for 150years in prison right after he was found guilty of engaging in operations that drained about $50 billion dollars.
Investment Ponzi schemes shouldn’t be confused with the pyramid schemes (multi-level marketing business opportunities) but you should keep in mind that in both cases, money got from new investors is used to pay the earlier investors.
Both operations fail to recruit more investors and eventually fall apart.
Skepticism: no 1 priority.
There are so many programs offering huge and intermediate returns for little and for the most popular ones no risk at all. These operations are types of fraudulent acts that attract the prospect. If you have any knowledge about the financial markets, you should be realistic and know that there will always be an up and down movement.
That fall and rise in numbers is highly imminent .
Getting returns that are generated by someone or program you’ve never heard of before or use complex and secretive strategies in operation “if you don’t understand it, don’t go for it”.
Unsolicited offers.
• Contacting you directly.
• Invitations to seminars.
• Sales pitches.
These are things that attract people thinking its all legitimate, this is highly seen with the older people/seniors.
Who is your seller.
You should research on your own for operations of the;
• Broker.
• Financial advisor.
• Brokerage company.
• Investments firm.
How;
You can use the Financial industry regulatory authority broker check. You should be able to verify that the firm/professional broker is licensed. Also check for any complaints or negative feedback.
Is the investment registered.
The Ponzi scheme business involves Un-registered investments according to the securities and exchange commission.
Understand the investment.
You should be able to understand how you are going to operate in the business and we always advice Investors not to put funds in complex programs. There are many sources online that can help you learn how to invest and also learn how to evaluate the opportunities for any risk and gain.
Don’t invest with businesses that don’t answer your simple questions and use very secretive and too complex strategies.