Lesson:How a Ponzi Scheme works

Conversation

Answer the following questions. You might be asked to write them down or answer them out-loud.

1. Do you know what’s a Ponzi Scheme?
2. Have you ever entered into this scheme? How was it? Did you make or lose money?
3. Why do you think people would create a Ponzi Scheme?
4. Do consider it gambling? Why? Why not?
5. Do you play slot machines?
6. What percentage of people do you think gamble?
7. Do you think that those who own and run Ponzi Schemes are criminals or conmen?
8. Apart from the obvious reason of winning money, why do people gamble?
9. Should some forms of gambling be banned?
10. Do you bet? How often? What's the biggest bet you ever placed?

Vocabulary

Look at the vocabulary below. Take time to explore the links for their definitions in English and their translations to Portuguese. When you are done, make a sentence with each word. Ask your teacher if you should write them down or say them out loud.

• d | t - invest
• d | t - beat
• d | t - needless
• d | t - conmen
• d | t - investor
• d | t - market
• d | t - hudge
• d | t - margin
• d | t - profit
• d | t - enough
• d | t - pyramid
• d | t - crumble
• d | t - illegal
• d | t - understand
• d | t - few
• d | t - returns

Video

Watch the following video but DON'T read the transcript yet.

After watching the video do this listening exercise.

Reading practice

Read the following transcript then do the associated reading comprehension exercise.

Transcript:

--->>> Transcript

Writing practice

Write a couple of paragraphs ---->>>> instructions <<<<-----. Make sure to use words you learned from the text and try to make it as long as you can.