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What is the difference between a Pyramid Scheme and stock market?

Wed, Apr 21, 2010

Financial Q&A

What is the difference between a Pyramid Scheme and stock market and y is one unethical and not the other?

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7 Comments For This Post

  1. I need french help! Says:

    the pyrmid scheme is when only 1 person gets the money but for the stock market anyone can get money

  2. fantabu1ous Says:

    One is legal and the other isn’t.

  3. mikem33607 Says:

    one you lose money to unscrupulous people

    the other is a pyramid scheme

  4. acoustic_jim Says:

    Basic explanation:

    A pyramid scheme is where 1 person recruits 2 people and gets those 2 people to pay them some money. Then those 2 people recruit another 2 people and so on. . . Eventually a lot of people lose out.

    The stock market is a calculated risk.

    If you don’t want to throw your money away then don’t enter a pyramid scheme and only enter the stock market after a lot of research.

    Only gamble what you can COMFORTABLY afford to lose.

    Be careful

  5. askmike Says:

    well with a pyramid scheme you eventually run out of people to join so the people on top of the pyramid get ripped off

  6. Bob Says:

    In a pyramid scheme, there is no actual investment. The person running the scheme makes payments of fake profits to early suckers to build credibility. He gets this money from later suckers. Then he disappears with all the money.

    In the stock market, all the money is really there. You have an honest chance to assess the risk and make a profit if you’re right. There are real companies to invest in.

  7. A nobody Says:

    The stock market is approved and regulated by the federal and state agencies. A pyramid scheme has no regulations and by its operations violates many laws.

    The fact that the pyramid scheme is illegal in its basic operations makes it unethical.

    If you did not have a Liberal education or had more maturity you would have known the answer to this.
    Your question just expresses your ignorance

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