Straight – Through – Processing (STP)

What is STP? Straight – Through – Processing is an initiative which enables the entire trade process for financial transactions (e.g. capital markets or other payment transactions) to be conducted electronically without the need for further manual...

Dematerialization

  “Dematerialization” also known as “demat” is the elimination of physical certificates or documents of title which represents ownership of securities so that securities exist only as accounting records” It is the process of converting securities (shares, bonds...

How Should I Respond to Ponzi Schemes?

Your response to them and their marketers should be: Ascertain the name of the scheme and its office address. Visit the SEC website (sec.gov.ng) for information on registered fund managers and to determine whether or not the scheme is registered with the Securities...

Why Do Ponzi Schemes Succeed?

1. Initial Credibility: The person running the scheme usually is a person of some credibility who is able to convince the initial investors to trust him/her with their money. 2. Investors fail to refer to regulatory authorities to ascertain the genuineness of...

How Do Ponzi Schemes Operate?

They make payments to their initial investors to serve as testimonials to convince and secure the trust of more victims. With the spread of the “good news”, many investors would storm the scheme with deposits of hard earned or borrowed monies amounting to millions...

How Can Ponzi Schemes Be Identified?

Extra-ordinary profit: They promise to give a very high return for money they collect. First comer bait: As part of the ploy to convince their customers and achieve their goal, Ponzi Schemes ensure that they pay the stipulated amount to their relatively few initial...