УКР РУС ENG

Search:


Email:  
Password:  

 REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

 FOUNDERS

KHARKIV NATIONAL ECONOMIC UNIVERSITY, UKRAINE

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

 PUBLISHER

INZHEK PUBLISHING HOUSE (KHARKIV, UKRAINE)

 SITE SECTIONS

Main page

Editorial staff

Editorial policy

Annotated catalogue (2011)

Annotated catalogue (2012)

Annotated catalogue (2013)

Annotated catalogue (2014)

Annotated catalogue (2015)

Annotated catalogue (2016)

Annotated catalogue (2017)

Annotated catalogue (2018)

Annotated catalogue (2019)

Annotated catalogue (2020)

Thematic sections of the journal

Proceedings of scientific conferences



BUSINESS INFORM №5-2015

The title and content

ABSTRACTS AND INFORMATION ABOUT AUTHORS

36

Section: Finance, Money Circulation and Credit
UDC 336.7-023.813 (477)
Prokopenko V. Y., Dubyna M. V., Kovalenko K. O.
Features of Functioning of Pyramid Schemes and their Impact on Development of the Financial Services Market of Ukraine (p. 226 - 232)

The article explores essence of category of «pyramid scheme» using basic scientific approaches to its understanding. In particular, has been proposed to consider the indicated category as follows: pyramid scheme is a form of business organization, which does not provide for neither production of goods nor provision of services, maintains its existence by means of the mandatory, permanent membership fees or other charges which are not used for the production of legal, legislation-based, financial activities to generate income, but to enrich, first and foremost, the founders of such schemes through the redeployment of funds accumulated in the course of operation of a financial pyramid in favor of the small number of participants, which is accompanied by existence of a large number of defrauded clients of financial services by such structures. Also identified and systematized are the basic characteristic features of pyramid schemes, which include the following: absence of licensing for implementation of the relevant activities at the financial services market, mandatory paying the registration fee, absence of any kind of refunding in the contract, psychological influencing by the owners of financial pyramid on their potential customers, aggressive marketing policy to attract financial resources, creating complex organizational structures of management of financial pyramid, the clients of pyramid schemes must become its members and employees, extremely high payments are made to benefit of the initial clients, amount of these payments does not correspond to the real situation on the market of financial services. On the basis of results of the study, mechanism for operation of financial pyramids has been described and a retrospective analysis of their development in Ukraine has been conducted.
Keywords: financial pyramid, pyramid scheme, fraud, financial institution, savings, financial service
Fig.: 1. Bibl.: 14.

Prokopenko Valeriia Yu. – Doctor of Sciences (Economics), Professor, Director, International Institute of Innovative Educational Technologies (office 1-3, 7/9 Karazina Str., Kharkiv, 61002, Ukraine)
Email: [email protected]
Dubyna Maksym V. – Doctor of Sciences (Economics), Associate Professor, Head of the Department, Department of Finance, Banking and Insurance, National University «Chernihiv Polytechnic» (95 Shevchenka Str., Chernihiv, 14027, Ukraine)
Email: [email protected]
Kovalenko Kateryna O. – Graduate Student, Chernihiv National University of Technology (95 Shevchenka Str., Chernihiv, 14027, Ukraine)

Article is written in Ukrainan
Downloads/views: 170

Download article (pdf) -

Reference to this article:
Prokopenko, Valeriia Yu., Dubyna, Maksym V., and Kovalenko, Kateryna O. (2015) “Features of Functioning of Pyramid Schemes and their Impact on Development of the Financial Services Market of Ukraine.” Business Inform 5:226–232.


1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 |

 FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

 INFORMATION

The Plan of Scientific Conferences


 OUR PARTNERS


Journal «The Problems of Economy»

Journal «Economics of Development»

  © Business Inform, 1992 - 2020 The site and its metadata are licensed under CC BY-SA. Write to webmaster