Difference between a ponzi scheme and an asset price bubble

Assignment Help Finance Basics

Reference no: EM131451009

Question: In a Ponzi scheme, named after Charles Ponzi, investors are paid profits out of money paid by subsequent investors, instead of from revenues generated by a real business operation. Unless an ever-increasing flow of money from investors is available, a Ponzi scheme is doomed to failure. What's the difference between a Ponzi scheme and an asset price bubble?

Reference no: EM131451009

Questions Cloud

You will repay the loan by making equal monthly payments : You plan to buy a car that has a total "drive-out" cost of $31,900. You will make a down payment of $4,785. You will repay loan by making equal monthly payments

What issues do you see in auditing the restaurants revenue : Determine if sales of $420,000 for the year ended December 31, 20x4, are correct. What issues do you see in auditing the restaurant's revenue?

Describe character personality using the big five traits : describe the character's personality using the "Big Five" traits. For each trait, be sure to provide evidence from character's thoughts, emotions, and behavior

Concept of contribution margin is pretty straightforward : The overall concept of a contribution margin is pretty straightforward- it is how much each unit contributes to covering fixed costs and eventually, profit

Difference between a ponzi scheme and an asset price bubble : In a Ponzi scheme, named after Charles Ponzi, investors are paid profits out of money paid by subsequent investors, instead of from revenues generated by a real

What are the after-tax operating cash flows : What are the after-tax operating cash flows that would result in each year during the three-year life of the new machine

What can be done to reduce acts of bullying and abuse : Read Nadin's story. Discuss the character issues involved in bullying. What can be done to reduce acts of bullying and abuse

What is the importance of the turnover of account receivable : What is the importance of the turnover of Accounts Receivables? Why is it is essential for organizations to keep cash reserves on hands?

What is the synergy from the merger : Hugo Comp. is analyzing the possible purchase of Vargas Inc. No one of the companies has any type debt. What is the synergy from the merger?

User Account

All Pages