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

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Limit order

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

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

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.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Volatility

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

Profit and Loss Statement (P&L)

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

Stock Market

A place where shares of publicly listed companies are traded.

Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

Ponzi Scheme