Pyramid Schemes Red Flags

Flag 2-1: Pyramid Schemes Involves Unregistered Securities

Pyramid schemes that involve unregistered securities are, well, unregistered. Like, who needs regulation, right?

But seriously, this is a major red flag. If it's not registered, it's not legit. Unless it's a ponzi scheme, in which case, it's still not legit.

Other red flags for pyramid schemes:

• Flag 2-2: Unusually High Yields
• Flag 2-3: No Clear Investment Strategy
• Flag 2-4: Unregistered Schemers