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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
These included the fashionable Superdutch contingent OMA (who boldly topped the Grossmarkthalle with three pyramidical structures reminiscent of Giza or the Swiss alps), and UN Studio, who proposed a monolithic capsule more suited to a sci-fi film.
The pyramidical five division structure that comes into place next season seems to have been designed to offer some hope to fans of less fashionable clubs.
The traditional model of industrial organisation has, until relatively recently, been built on a pyramidical and hierarchical framework (see Figure 1).
The Internet kids in Next are radically altering the shape of organizations -- from pyramidical hierarchies to fiat pancakes.
Viewed collectively, these relations assume configurations or shapes, the most common of which is the pyramidical (stair step) hierarchy.
Some mass media outlets are confused as to how to cover these cybermovements, since they have no usual pyramidical structure and no self-annointed leaders.
Is the male language of Father and Son, are the masculine attributes of power and lordship, or is the pattern of pyramidical hierarchy in the Trinity, any longer useable?
The only public building of any interest that lies on the road is of modern date, but is said to be a good specimen of oriental architecture; it is of a pyramidical shape, and is made up of thirty thousand skulls, contributed by the rebellious Servians in the early part (I believe) of this century: I am not at all sure of my date, but I fancy it was in the year 1806 that the first skull was laid.
Decision making came via a pyramidical structure with the people forming the base, experts and the government outlining and executing policies.