FINANCIAL PYRAMIDS AG AF O NOVA ANNA IGNATYEV

FINANCIAL PYRAMIDS AG AF O NOVA ANNA IGNATYEV A NA DEZHDA PD 202

FINANCIAL PYRAMID A risk structure that spreads investor's risks across low-, medium -, and high-risk vehicles. The bulk of the assets are in safe, low-risk investments that provide a predictable return (base of the pyramid). At the top of the pyramid are a few high-risk ventures that have a modest chance of success.

• An investment strategy that structures portfolios according to the risk associated with each investment. The majority of investments are low-risk and nonspeculative; these form the "base" of the pyramid. A smaller number are medium-risk, forming the "middle" of the pyramid. A few are high-risk, high-return investments that may be highly speculative. The idea behind a financial pyramid is to allow for the possibility of high return for the investors without acquiring too much risk in the portfolio.

Many investors structure their portfolios in the form of a financial pyramid. The base of the pyramid is made up of nonvolatile, liquid assets. The next level includes securities that provide both income and long-term capital growth. At the third level, a smaller portion of the portfolio is allocated to more volatile investments with higher potential returns and greater risk. And at the top level, the smallest percentage of the overall portfolio is invested in ventures that have the highest potential return but also pose the greatest investment risk. This strategic approach gives you the potential to realize significant returns if some of your speculative investments succeed without risking more than you can afford to lose.

LEVELS • Level 1 - Protection • Level 2 - Savings • Level 3 - Wealth Building • Level 4 - Speculation • Summary

STANFORD INTERNATIONAL BANK Stanford International Bank of Texas billionaire Allen Stanford for 15 years carried out a fraudulent scheme based on the sale of certificates of deposit, guarantee a high rate of return. Investors bought these securities, believing in the promises of "incredible and unreasonably high interest rates. "

In June 2009, the financier was taken into custody. The Securities and Exchange Commission (SEC) filed charges against Stanford in fraudulent transactions. According to the estimates committee, Stanford, his family and friends "have made a major fraud based on false promises" and fabricated Data from previous years to defraud investors. According to prosecutors, Stanford has appropriated about seven billion dollars belonging to investors. With this money he led a luxurious lifestyle, started various business projects and bribe regulators, who helped him to hide his criminal schemes.

In March 2012, the Court acknowledged the American city of Houston is accused of cheating the Texas billionaire Allen Stanford guilty on 13 of 14 counts. Stanford faces up to 20 years in prison on the most serious charges, but in the case of serial serving prison terms he could spend in prison much longer.

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