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English definition of “pyramid scheme”

pyramid scheme

noun [C]     US
a way of deceiving investors (= people giving money to a company hoping to get more back) in which money that a company receives from new customers is not invested to their advantage, but is used instead to pay debts owed to existing customersFraud and corruptionFinancial investments and the stock market
(Definition of pyramid scheme noun from the Cambridge Advanced Learner's Dictionary & Thesaurus © Cambridge University Press)
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