What is the difference between a Ponzi scheme and a legitimate investment?

A Ponzi scheme and a legitimate investment are two very different types of investments. A Ponzi scheme is a fraudulent investment that involves the use of money from new investors to pay off existing investors. It is illegal in Tennessee, and it is considered a form of investment fraud. A legitimate investment, on the other hand, is an investment that is apart of a legitimate business. This type of investment follows certain laws and regulations that are set by the state of Tennessee, and it is designed to generate a return on investment through profits or appreciation of the asset. In a Ponzi scheme, the promised returns to investors are usually very high and the investments can seem too good to be true, which is why it is important to be aware of the difference between a legitimate investment and a Ponzi scheme. In Tennessee, it is important to be knowledgeable of the Investment Fraud Law to protect yourself from becoming a victim of fraud. Legitimate investments should be thoroughly researched before investing to make sure that the investment is in compliance with the laws and regulations of the state and to make sure that the returns on investment are reasonable.

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What is the difference between a Ponzi scheme and a legitimate investment?

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