Investor Protection Guide: Ponzi Scheme

{
  "id": "MLC-T-LAW-002765",
  "term": "Investor Protection Guide: Ponzi Scheme",
  "field": "Law",
  "definition": "A fraudulent investment operation that pays returns to earlier investors with money taken from later investors, rather than from actual profits. The scheme relies on a continuous flow of new money to sustain the illusion of profitability. It inevitably collapses when the inflow of new investments ceases or when a large number of investors attempt to withdraw their funds simultaneously.",
  "url": "https://mlchart.com/terminology/law/investor-protection-guide-ponzi-scheme/"
}