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Ponzi Scheme

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

More terms

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Earnings per share

We look at what earnings per share mean and how to calculate it

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Accounting standards

The rules a company follows when preparing financial statements.

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