High Yield Investment
Programs
HYIPs are purported
investment programs
normally offered via the
Internet. HYIP stands
for High Yield
Investment Program.
HYIPs typically accept
investments of $100 or
less while promising
high returns. The
introduction of
e-currencies such as
e-gold and StormPay
(although almost all
HYIPs do not use
StormPay as of February
2006, has made it easy
for HYIPs to operate
across international
boundaries, and to
accept large numbers of
small investments.
HYIPs typically are not
based in the United
States, Europe, or Japan
- countries that have
strong laws against
unregistered investment
programs. HYIPs disclose
little or no detail
about the principals,
management, location, or
other aspects of whom is
getting the money to be
invested, and relatively
little information
(other than asserting
that they do various
types of trading on
various stock and other
exchanges) on how their
investment programs
actually work.
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