What is a 'Ponzi Scheme'? Definition & meaning

More terms

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

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.

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.

Yield to maturity (YTM)

What is yield to maturity and why is it useful?

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Withholding Tax

A tax deduction made at the source of the payment.

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

Ponzi Scheme