According to your text a _______ is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors
The correct answer to the following question will be the "Ponzi Scheme".
Explanation:
A Ponzi scheme is a form of extortion that hooks investments and pays benefits from more modern investors to earlier investors with funds.
It will retain a viable business illusion as long as the new lenders contribute additional funds and as long as most creditors do not expect full compensation and yet still believe throughout the non-existent resources they are supposed to ever own.
It involves paying supposed returns from funds accumulated by investors to existing shareholders.
