pyramid schemepyramid scheme
(plural pyramid schemes)
- attributive form of pyramid scheme
- pyramid-scheme tactics
pyramid scheme - Investment & Finance Definition
An illegal scheme that creates investments that end up having no value. Instead, they are fraudulent. One of the more famous pyramid schemes was the one named after Charles Ponzi: In the late 1920s, it paid investors out of the earnings received from new investors. However, there were no earnings, only new investors; the scheme soon collapsed, but not before many people lost money.