Ponzi schemes pay earlier participants with new money
Ponzi schemes pay earlier participants with new money A Ponzi scheme is investment fraud. New participants’ money funds payments to earlier participants. Those payments can be presented as…
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An invoice differs from a payment receipt
An invoice differs from a payment receipt An invoice generally identifies an amount payable. A receipt acknowledges payment received. Possessing an invoice alone does not prove payment. A…
Recency bias: the latest event is not the whole story
Recency bias: the latest event is not the whole story Recency bias gives excessive weight to recent experiences. The latest fall or rise may dominate attention. However, recent…
Currency hedging differs from predicting profits
Currency hedging differs from predicting profits Currency hedging aims to reduce exchange-rate effects. It usually relates to an existing foreign-currency receipt or payment. For example, a hypothetical business…
Bitcoin’s limited supply does not guarantee its price
Bitcoin’s limited supply does not guarantee its price Bitcoin’s rules limit the issuance of new units. Its familiar supply cap is approximately twenty-one million units. That figure differs…
NFT ownership is not the same as copyright
NFT ownership is not the same as copyright An NFT is an identifiable token on a network. It can be linked to an image or another work. Owning…
Credit utilization: how much of the limit is used?
Credit utilization: how much of the limit is used? Credit utilization compares the balance used with the credit limit. It mainly concerns revolving credit such as cards. A…
A minimum card payment is not full repayment
A minimum card payment is not full repayment The minimum payment is the smallest amount due under the statement. It differs from the total card debt. Paying the…
Automatic renewal: a charge without a new purchase
Automatic renewal: a charge without a new purchase Automatic subscriptions can renew without fresh orders. A free trial may later become a paid subscription. The trial’s end date…
Credit reports: the details behind a score
Credit reports: the details behind a score A credit report describes someone’s credit history. A credit score is one model’s numerical summary. US reports include payment history and…