Stan is an investment manager. He has received money from various investors and given them a promise of very high returns on their investments. The invested money is not supplying enough capital to pay the returns promised, so he has started using new investors' money to pay older investors. By advertising and by word of mouth, people are anxious to invest with Stan because of the money being paid, and with the influx of new investors, he is able to continue operating. Stan is
A. racketeering.
B. guilty of conspiracy to defraud.
C. operating an insider-trading operation.
D. operating a Ponzi scheme.
Answer: D
You might also like to view...
The ultimate goal of superleadership is:
a. to increase your own self-leadership b. to increase others self-leadership c. to increase your positive thoughts d. to increase team self-leadership
The present value of a future cash flow is found by dividing that cash flow by (1 + r)N, where r is the discount rate and N is the number of time periods in the future that the cash flow will be received.
Indicate whether the statement is true or false
Which of the following intangible assets does not convey a specific legal right or privilege?
A. Copyrights B. Trademarks C. Goodwill D. Franchises
Brian had started a new business venture using majority of his savings. However, his divorce affected him monetarily because of which he had to shut down his business. Which of the following threats is highlighted in the given scenario?
A. Bigger regulatory burden B. High risk of failure C. Too little money D. Lack of knowledge