Word

Description

Pyramid scheme

(Ponzi scheme) a method of making money that requires new participants
to invest in order for previous investors to be paid. The problem with this
plan is that it continuously requires new investors. The Ponzi scheme can be
thought of as an expensive game of Old Maid. Unfortunately, pyramid schemes
eventually collapse because it becomes increasingly difficult to attract new players.
Chain letters, asking people to send money to others listed in the letter, and
then crossing off the last recipient’s name and replacing it with yours, are a form
of pyramid scheme. The pyramid scheme is mentioned in this book because the
Internet is alive with such offers. As with anything else, a user would be wise to
know the company or individual he is dealing with before sending money.