pyramid

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Pyramid

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

pyramid

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.

pyramid

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 ?
The Egyptian Ministry of Antiques is to open El-Lahun Pyramid for the first time on Friday, June 28, coinciding with the celebrations of 30 June.
Waring said this "pyramid" on the moon could be the link that connects many pyramids on Earth.
In Egypt, where climbing up pyramids is illegal, many have called on the authorities to investigate the photos.
Wednesday's statement says the pyramid of King Khafre, one of the three Great Pyramids gracing the Giza province south of Cairo, will be ready to receive tourists starting Thursday.
Saving the Pyramids, published by the University of Wales Press, takes a long and detailed look at the process of saving the pyramids, and what this work has revealed about the way they were constructed.
Eight University Athletic Association of the Philippines (UAAP) cheering squads showcased jaw dropping pyramids in the UAAP Cheerdance Competition held at the SM Mall of Asia Arena on Saturday.
Hilary Swank JEDDAH: Hollywood actress Hilary Swank delighted her Arab fans on Sunday by posting a photo on social media from her recent visit to the pyramids of Giza in Egypt.
The Great Pyramid, looming alongside other large pyramids, is a towering achievement, remarkable for its simple beauty and colossal grandeur.
The pyramids built by the Mayans are about 3000 years old, and are one of the most popular tourist attractions of Mexico.
The large stone pyramids from ancient times still remain an enigma.
Decades after the landmark decision, the above criteria, known as the Amway safeguards test, continues to be used as a model or gold standard in differentiating legitimate MLM companies versus illegal pyramids.