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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Unit 4 Challenges 3

Unit 4 Challenges 3

Q 1. Which of the following features of an investment can individuals use to identify a pyramid scheme? 2. Which of the following is an example of a phishing scheme? 3. How does Securities Investor Protection Corporation (SIPC) insurance provide protection to investors of a brokerage firm? 4. Jack is a middle-aged man who exhibits status quo bias when it comes to saving and investing. He tends to choose low-reward financial products. Which of the following strategies would help Jack overcome his current situation?

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1. A pyramid scheme promises either high commissions on products sold or a sizable share of any money paid by new members to join the organization. 2. A phishing scheme is an unsolicited email asking you to provide personal information (such as your Social Security number) or confirm the details of a credit account.