Exchange Currency

pyramid scheme

An illegal investment scheme in which investors are promised impossibly high returns on their investments. These are scams in which money from later investors is used to pay earlier investors. The creators of the scheme get most of the profits while those who come later are left with nothing because there are eventually an insufficient number of new investors to pay the existing ones. These scams inevitably collapse because they require exponential growth in the number of participants at each step, which is impossible. Letters or emails that encourage the recipient to send money and then pass the message along to a certain number of new targets are a type of pyramid scheme.

Related information about pyramid scheme:
  1. Pyramid scheme - Wikipedia, the free encyclopedia
    A pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the ...
     
  2. The Pyramid Scheme

     
  3. What Is A Pyramid Scheme?
    Dec 16, 2009 ... Considering joining an "investment club" that promises phenomenal returns on your sign-up fee? Read this article and think again!
     
  4. HowStuffWorks "How Pyramid Schemes Work"
    Looks like you've been suckered in by a pyramid scheme. Your neighbor and his buddies are at the top of the pyramid. They got in early and made money by ...
     
  5. Pyramid Scheme Alert
    International organization to expose, study and prevent illegal pyramid schemes. News, alerts, resources, legal information and consumer information.
     
  6. Pyramid Schemes
    Feb 25, 2009 ... In the classic "pyramid" scheme, participants attempt to make money ... The fraudsters behind a pyramid scheme may go to great lengths to ...
     
  7. The Pyramid Scheme - Grand Rapids, MI - Concert Venue, Arcade ...
    The Pyramid Scheme, Grand Rapids, MI. 12927 likes · 1087 talking about this · 11458 were here.
     
  8. I still think it is a pyramid scheme...(Pyramid Scheme Cartoon by Pat ...
    Dec 8, 2010 ... http://www.PatPetrini.com For all of us in the network marketing industry that have met somebody like this. ;-) A hilarious cartoon on the ...