The Attractiveness of a Ponzi Pyramid Scheme Consists Of

question 8

Multiple Choice

The attractiveness of a Ponzi pyramid scheme consists of:

• A)selling stocks with very high volatility to investors.
• B)convincing investors to invest in assets from which they will never receive a return.
• C)attracting investors by giving them a high return using new subscribers' money.
• D)convincing investors to invest and then declaring bankruptcy.

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Definitions:

Stock Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares, which can increase the value of remaining shares.

Investment

The process of distributing funds or resources in anticipation of earning profits or income.

Profitable

A financial status indicating that the revenue of an entity is greater than its expenditures over a specified period, resulting in a net gain.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a company.