2 definitions by Alfredo Alberto

A type of investment scam.

A ponzi scheme is a fraudulent investment operation that involves paying returns to investors out of the money raised from new investors.

The scheme is named after Charles Ponzi, an Italian immigrant to the United States in the 1920s.
I got taken by a HYIP ponzi scam last week. They promised 20% a month but ran away with my money!
by Alfredo Alberto September 19, 2004
High Yield Investment Program.

A synonym for typically Internet-based ponzi schemes, with small minimums (typically less than US$500) and promised sky high returns without risk (i.e. more than 20% per year).

NOTE: See Triumph of the Optimists: 101 Years of Global Investment Returns
by Elroy Dimson, Paul Marsh and Mike Staunton.
Remember that new HYIP that I found that pays 25% a month? Well it paid for three months and then it collapsed.
by Alfredo Alberto September 20, 2004

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