What is 'Ponzi Scheme'? | Freetrade Dictionary

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

More terms

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).

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

Diversification

An investment strategy in which money is put into a variety assets.

Fundamentals

The data or information that is likely to impact a company's stock price.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Base rate

What's the base rate?

Zero coupon bonds

What is a zero coupon bond?

Compound interest

Understand what compound interest means and how it's calculated

Ponzi Scheme