Definition
A pyramid scheme is a fraudulent and unsustainable investment pitch that relies on promising unrealistic returns from imaginary investments. The early investors actually get paid those big returns, which leads them to recommend the scheme to others. Investors' returns are paid out of the new money flowing in. Eventually, no new investors can be found and the pyramid collapses. In a variation of th
In Panel Profits
In the Panel Profits market platform, What Is a Pyramid Scheme? How Does It Work? applies standard portfolio management principles to comic assets and physical collections.
Common mistakes
Do not infer unobserved prices.