Next video:
Loading the player...

Learn how to differentiate between a legitimate marketing strategy and a pyramid scheme.

Related Articles
  1. Managing Wealth

    9 Signs That Business ‘Opportunity’ May Be a Scam

    There can be a fine line between a legitimate multi-level marketing opportunity and a pyramid scheme. Here are 9 warning signs.
  2. Investing

    What Is A Pyramid Scheme?

    Find out how this financial scam works and why you should watch out.
  3. Investing

    Determining Risk And The Risk Pyramid

    Many investors do not understand how to determine the risk level their individual portfolios should bear.
  4. Insights

    Recognize And Avoid "Work At Home" Scams

    From pyramid schemes to envelope stuffing, there are a lot of scams masquerading as legitimate part-time work.
  5. Small Business

    Multilevel Marketing Isn't Always A Scam, But It Often Is

    Nerium and Amway are popular direct sales companies that recruit new buyers and sellers to make a profit. Sadly, many direct sales firms are scams.
  6. Investing

    Pump And Dump

    Learn more about this devious scheme that targets micro- and small-cap stocks.
  7. Insights

    Affinity Fraud: No Safety In Numbers

    Ponzi schemes are just one example of this type of scam; learn how to avoid becoming a victim.
  8. Investing

    Herbalife Scrambles, Hires New Lawyer as Short Interest Booms

    The MLM giant shakes up its top management as an FTC ruling forces the firm to reduce guidance.
  9. Investing

    Herbalife CEO Cries 'Fake News' Amid Victory Lap

    As its CEO retreats into retirement, investors wonder whether short sellers still stand a chance.
  10. Financial Advisor

    Risk And Diversification

    Safeguarding your portfolio involves a few simple steps.
Hot Definitions
  1. IRR Rule

    A measure for evaluating whether to proceed with a project or investment. The IRR rule states that if the internal rate of ...
  2. Short Covering

    Short covering is buying back borrowed securities in order to close an open short position.
  3. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  4. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  5. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  6. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
Trading Center