Comments on: I Didn’t Know You Do That! http://www.birolsblog.com/2008/08/26/i-didnt-know-you-do-that/ Advice. Assistance. Attitude. For Business Owners Who Need to "Get There" Sun, 21 Mar 2010 15:13:04 +0000 http://wordpress.org/?v=2.2.2 By: 12 Step Committment http://www.birolsblog.com/2008/08/26/i-didnt-know-you-do-that/#comment-5122 12 Step Committment Thu, 13 Aug 2009 16:03:22 +0000 http://www.birolsblog.com/2008/08/26/i-didnt-know-you-do-that/#comment-5122 Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually offers returns that other investments cannot guarantee in order to entice new investors, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going. The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases. The scheme is named after Charles Ponzi,[1] who became notorious for using the technique in early 1920. He had emigrated from Italy to the United States in 1903. Ponzi did not invent the scheme (Charles Dickens' 1857 novel Little Dorrit described such a scheme decades before Ponzi was born, for example), but his operation took in so much money that it was the first to become known throughout the United States. His original scheme was in theory based on arbitraging international reply coupons for postage stamps, but soon diverted investors' money to support payments to earlier investors and Ponzi's personal wealth. Knowingly entering a Ponzi scheme, even at the last round of the scheme, can be rational economically if government bails out those participating in the Ponzi scheme.[2] Contents [hide] 1 Hypothetical example 2 Similar schemes 3 Notable Ponzi schemes 4 See also 5 References 6 Further reading 7 External links Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually offers returns that other investments cannot guarantee in order to entice new investors, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.

The scheme is named after Charles Ponzi,[1] who became notorious for using the technique in early 1920. He had emigrated from Italy to the United States in 1903. Ponzi did not invent the scheme (Charles Dickens’ 1857 novel Little Dorrit described such a scheme decades before Ponzi was born, for example), but his operation took in so much money that it was the first to become known throughout the United States. His original scheme was in theory based on arbitraging international reply coupons for postage stamps, but soon diverted investors’ money to support payments to earlier investors and Ponzi’s personal wealth.

Knowingly entering a Ponzi scheme, even at the last round of the scheme, can be rational economically if government bails out those participating in the Ponzi scheme.[2]

Contents [hide]
1 Hypothetical example
2 Similar schemes
3 Notable Ponzi schemes
4 See also
5 References
6 Further reading
7 External links

]]> By: zorica http://www.birolsblog.com/2008/08/26/i-didnt-know-you-do-that/#comment-4749 zorica Wed, 17 Jun 2009 13:55:20 +0000 http://www.birolsblog.com/2008/08/26/i-didnt-know-you-do-that/#comment-4749 Some people consider that they have plenty of good ideas running through their heads, but not always enough cash in the bank to make them all happen. But it isn’t always the case. Sometimes, people have the idea, but they need more information to manage that process well. If you think about making a good business decision about your small business, consider that issue using new site www.bizcloud.net You will find some useful and important information about your small business Some people consider that they have plenty of good ideas running through their heads, but not always enough cash in the bank to make them all happen. But it isn’t always the case. Sometimes, people have the idea, but they need more information to manage that process well. If you think about making a good business decision about your small business, consider that issue using new site www.bizcloud.net
You will find some useful and important information about your small business

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