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

Income statement

A summary of a company's income and expenses over a set period of time.

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Value stocks

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

United States Dollar (USD)

The famous greenback our friends in the US use as currency.

Arithmetic Mean

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

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

Diversification

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

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).

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Ponzi Scheme