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

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Yield curve

A graphical representation of interest rates over time

Diversification

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

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

OEIC

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

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Ponzi Scheme