Difference between revisions of "Lesson:How a Ponzi Scheme works/ExerciseL1"

Revision as of 09:36, 2 May 2013

Listening Exercise

So, you may have

about Ponzi Schemes in the news. Everybody knows they’re

but you might not understand how they work. So Ben is here to show us. To

, Ben gets a few people to invest their money with

. At the end of the year he gives those clients amazing

that

every other investor in the market.

to say the investors are

. In fact they’re so

about all the money they’re making that they tell all their friends and family about it too. Who tell their friends, who tell their friends. In the

market, most investors make money some years and lose money others. But Ben’s Ponzi Scheme, yeah, it never loses money. In fact it always beats the market by a

margin but the returns he pays to these people aren’t from actual

. He just takes the money, these new guys invest and gives it to these guys. But as soon he can’t get

new money from this group to pay these people then the whole pyramid starts to

. Because they’re not getting paid anymore. Ben and these guys who invested first made a

but these folks lost all their money. So the next time a guy like Ben tries to get you to invest in something that sounds too good to be true. It probably is. Just ask Ben.

@@ Line 8: / Line 8: @@
 {Watch the video and complete the text according to what you can understand.
 |type="{}"}
-So, you may have { heard _5} about Ponzi Schemes in the news. Everybody knows they’re {  illegal _7 } but you might not understand how they work. So Ben is here to sow us. To {  start off _9 } , Ben gets a few people to invest their money with him. At the end of the year he gives those clients amazing {  returns _7 } that {  beats _5 } every other investor in the market. {  Needless _8 } to say the investors are *thrilled. In fact they’re so * about all the money they’re making that they tell all their friends and family about it too. Who tell their friends, who tell their friends. In the stock market, most investors make money some years and lose money others. But Ben’s Ponzi Scheme, yeah, it never loses money. In fact it always beats the market by a huge margin but the returns he pays to these people aren’t from actual profits. He just takes the money, these new guys invest and gives it to these guys. But as soon he can’t get enough new money from this group to pay these people then the whole pyramid starts to crumble. Because they’re not getting paid anymore. Ben and these guys who invested first made a *killing but these folks lost all their money. So the next time a guy like Ben tries to get you to invest in something that sounds too good to be true. It probably is. Just ask Ben.
+So, you may have {  heard _5 } about Ponzi Schemes in the news. Everybody knows they’re {  illegal _7 } but you might not understand how they work. So Ben is here to show us. To { start off _9 }, Ben gets a few people to invest their money with {  him _3 }. At the end of the year he gives those clients amazing {  returns _7 } that { beats _5 } every other investor in the market. {  Needless _8 } to say the investors are { thrilled _8 }. In fact they’re so { ecstatic _8 } about all the money they’re making that they tell all their friends and family about it too. Who tell their friends, who tell their friends. In the { stock _5 } market, most investors make money some years and lose money others. But Ben’s Ponzi Scheme, yeah, it never loses money. In fact it always beats the market by a {  huge _4 } margin but the returns he pays to these people aren’t from actual { profits _7 }. He just takes the money, these new guys invest and gives it to these guys. But as soon he can’t get {  enough _6 } new money from this group to pay these people then the whole pyramid starts to { crumble _7 }. Because they’re not getting paid anymore. Ben and these guys who invested first made a { killing _7 } but these folks lost all their money. So the next time a guy like Ben tries to get you to invest in something that sounds too good to be true. It probably is. Just ask Ben.
 </quiz>
 |}