What is a 'Ponzi Scheme'? Definition & meaning

More terms

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Volatility

A measure of how much the prices of an asset or index vary over time.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Securities

Bonds and stocks.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Ponzi Scheme