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That are the pyramids and since they work



The investment pyramids, also acquaintances under other names as rip-offs in pyramid, scheme of ponzi, cells of plenty and silver circuits, are a business scheme, principally of investment, which search as principal target to enrich an entity and/or it presents itself quickly, promising prompt refunds and with big profitability to all his affiliates, what in fact it is only true by half, since the majority of the same they lose completely his capital.

The pyramids as it was said that previously there are a financial system that plays with the expectations of his investors, since this character (the expectations) there are a basic part in the investments (economic beginning), since the principal showy one that they possess there are his big profitability generated in a little time; even some of them offer to the above mentioned investors profitability superior to 100 per cent, in return that these include more persons in the pyramid and/or investment.

At present there have developed several types of pyramids, which qualify in two classes principally which in spite of his differences, especially radicals in the “profit generated” possess the majority of his equal beginning; these types of pyramids are:

• Pyramid closed or of ponzi scheme: this type of pyramid bases on the money reception with intentions of investment, which during the development of the pyramid is never realized, to end that the above mentioned resources are used to benefit the members and/or investors who are in the summit of the same one; nevertheless these yields only are granted to the top members, leaving without liquides not even profitability to the lowest members. It is necessary to notice that the above mentioned pyramid offers profitability of 150 % to 300 % which appears like an "excellent" fraudulent way to invest; nevertheless the above mentioned yields are not comparable with the generated ones by the open pyramids

• Open pyramids or cells of plenty: these pyramids base his functioning on the massive reception of dineros straight injected of the external investment, with the intention of correcting the yields payment to the members located in the top levels, stopping to the financial suspense at the average and low levels of the pyramid, since these only receive the yields in certain occasions. A very interesting aspect to mention about this type of pyramid, is his aptitude to generate yields of 800 % up to 10.000 %, which appears like the highest revenue for the entity that realizes this type of activity. It is necessary to notice that these pyramids are those where his participants are considered well informed about the financial activity in the one that they are, by it they should not feel cheated on having finished the same one, nevertheless the enormous growth of this type of pyramid gives itself for the ignorance and results that will bring in the end this activity, especially for the investors who are in the base of the same one.

On the other hand, the functioning of the pyramid is something really simple and effective, since this one alone bases on the investors' adequacy on the part of other investors and this way successively, up to coming to a point where the investment is such, that the company or person closes, disappears or liquidates only to exhaust financially the top members, leaving aside, and hence meaning an entire loss for the investors of low position in the pyramid.
Bibliographical information

Written for: Publishing house smartforextips.com


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