What is a 'Ponzi Scheme'? Definition & meaning

More terms

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.

Gross Margin

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

Profit and Loss Statement (P&L)

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

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Fixed Income

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

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

NYSE

The world's largest stock exchange. Wall St HQ.

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