Lesson: How a Ponzi Scheme works/ExerciseL1

Listening Exercise

Watch the video and complete the text according to what you can understand. 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.