Ponzi scheme

noun
Pon·​zi scheme | \ ˈpän-zē- How to pronounce Ponzi scheme (audio) \

Definition of Ponzi scheme

: an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks

First Known Use of Ponzi scheme

1920, in the meaning defined above

History and Etymology for Ponzi scheme

Charles Ponzi †1949 American (Italian-born) swindler

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The first known use of Ponzi scheme was in 1920

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Cite this Entry

“Ponzi scheme.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Ponzi%20scheme. Accessed 20 Oct. 2020.

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More Definitions for Ponzi scheme

Ponzi scheme

noun
Pon·​zi scheme | \ ˈpän-zē-ˌskēm How to pronounce Ponzi scheme (audio) \

Legal Definition of Ponzi scheme

: an investment swindle in which early investors are paid with sums obtained from later ones in order to create the illusion of profitability

History and Etymology for Ponzi scheme

Charles A. Ponzi (ca. 1882–1949), Italian-born American swindler

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