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I want to figure out what's the difference between buying stocks and entering Ponzi scheme under certain situations. This is more of a theoretical/hypothetical question.
Suppose the company P makes 0 revenue, contributes 0 to the society and there is 0 regulations.
If investor A bought stocks of P, and then sold it at a higher price to investor B. That is, the later comer is paying the earlier comer. Then this is how Ponzi scheme works. Hence, buying stocks of P = entering Ponzi scheme?
Does the reasoning make sense? Do I miss something important?