Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to pyramid: pyramid scheme, Pyramid power


1. To use unrealized profits from margin transactions to increase one's margin. That is, one uses unrealized profits as collateral on a margin account in order to borrow more money from a brokerage to buy more securities.

2. To borrow to expand a company's operations.

3. See: Ponzi Scheme.


A classic investment fraud in which the operator pays promised high returns to current investors from the contributions made by new investors. Thus, funds are never invested in any productive assets but are simply paid out as a return to existing owners. The operator must continue to attract more and more investors in order to pay a return to those who have already committed their funds. Also called Ponzi scheme.


To use profits derived from a profitable security position in combination with borrowed money in order to acquire an even larger investment position. Pyramiding, which is very risky, allows an investor the possibility of greater profits by using a given amount of funds to control the maximum amount of securities.
References in periodicals archive ?
Like those at the bottom of a pyramid, their money helps to keep the price of the stock well above its actual value.
In an illegal pyramid scheme, ``investors'' put up a certain sum of money on the promise of a windfall payout if they recruit more people to enter the scheme.
Signs invite visitors to taste water that has traveled more than 600 miles from Northern California for distribution from the man-made Pyramid Lake.
Their Asian Diet Pyramid is patterned on the plant-based diets of China, Japan, Thailand, the Philippines and India, countries long known to be relatively free of the heart disease, obesity and cancers that plague Americans.
Paul Schreiner, who asserted his Fifth Amendment right to remain silent during the Ventura County grand jury investigation into the pyramid scheme last year, was fired Wednesday, officials said.