A ______________ is when an individual convinces investors that they can make large returns on their money and uses subsequent investors to pay earlier ones.

Question

Quizplus · Accepted Answer

This is the definition of a Ponzi scheme, named after Charles Ponzi who used this fraudulent method in the early 20th century. It involves promising investors returns that are too good to be true and using the money from new investors to pay back earlier investors, instead of generating actual profits.

A ______________ Is When an Individual Convinces Investors That They