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.

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Zero-Sum Game

A situation in which one person's gain is another's loss.
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American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.
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Free Trade

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

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

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt
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Oligopoly

A situation in which a market or industry is controlled by a small group of companies.
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Formal admission

The moment new shares are officially admitted to the stock exchange and open to trading for everyone.
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Account balance

The amount of money a user has stored in a financial repository.
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OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.
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