What is Ponzi Scheme? | From A Business Professor #ponzi #madoff

Description

A Ponzi scheme is a fraudulent investment scheme that lures investors with the promise of high returns, often in a short time frame. Instead of generating legitimate profits, the operator uses funds from new investors to pay returns to earlier ones, creating the illusion of success. It is named after Charles Ponzi, who became infamous for running such a scheme in the early 20th century. So Who is Charles Ponzi, and what exactly did he do? What key characteristics do Ponzi schemes normally share? Are there some real-world examples? In this video, I will discuss these questions with you.