What is a 'Ponzi Scheme'? Definition & meaning

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

More terms

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.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Bond

Learn what a bond is

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

Compound interest

Understand what compound interest means and how it's calculated

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Ponzi Scheme