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Ponzi Scheme

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.

More terms

Gross Margin

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

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.

SPAC

Find our what a SPAc or special purpose acquisition company is.

Investment Return

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

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

Stock Market

A place where shares of publicly listed companies are traded.

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