STUDY OF THE FINANCIAL PYRAMID BY MEANS OF MATHEMATICAL MODELS

Abstract

A financial pyramid is a system of providing income to members of a structure by constantly attracting funds from new participants. The income of the first participants of the pyramid is paid at the expense of the subsequent ones. In most cases, the true source of income is hidden. The article examines the activities of financial pyramids from the perspective of financial mathematics, Economics and computer science. The mechanisms of existence of financial pyramids are revealed. The dynamics of changes in their parameters are analyzed on the basis of an interdisciplinary study. The activity of the financial pyramid of JSC "MMM"was studied. A mathematical model of this pyramid scheme was created using the MathCAD application package. The dynamics of parameters of a financial pyramid is studied using methods of financial mathematics. As research methods, we have chosen an interdisciplinary approach, numerical method, mathematical and computer modeling, analysis and synthesis, and generalization of results. We have studied the financial activity of commercial structures (banks, firms, etc.), and created a numerical model of a financial pyramid that issues securities. The conditions for the development and collapse of a financial pyramid are defined.