Pyramiding,

Definition of Pyramiding:

1. An object, shape, or arrangement in the form of a pyramid.

2. A system of financial growth achieved by a small initial investment, with subsequent investments being funded by using unrealized profits as collateral.

3. Corporate: Taking control of a firm (subsidiary) through majority shareholding and then taking control of another firm with the combined shareholding ... and so on to build a large holding company that provides managerial and financial (and sometimes marketing) functions for the entire group.

4. An investor who is pyramiding uses additional margin from the increasing price of a security in his or her portfolio to purchase more of the same security. This is generally a slow method of increasing one's position size, as the margin increases will permit successively smaller purchases. Additionally, whether the pyramiding involves only a single security or a few securities, the risk of a portfolio concentration increases with each level of the pyramid. See margin maintenance and margin call for risk aspects of pyramiding.

5. A monumental structure with a square or triangular base and sloping sides that meet in a point at the top, especially one built of stone as a royal tomb in ancient Egypt.

6. Finance: Using paper profits to build up a portfolio of investments.

7. Pyramiding is a method of increasing a position size by using unrealized profits from successful trades to increase margin. Pyramiding involves the use of leverage to increase one's holdings by making use of an increased unrealized value of current holdings. Since the use of leverage is involved, this is a riskier strategy than one which only makes use of cash to purchase securities.

8. Banking: Borrowing from bank A to pay off bank B and then borrowing from bank C to pay off bank A ... and so on without ever paying off the originally borrowed principal. This scheme collapses when interest payments become too large for the debtor, resulting in bankruptcy if a debt consolidation is not arranged.

9. Stack or arrange in the shape of a pyramid.

10. Real estate: Purchasing additional properties by borrowing against the currently owned properties.

11. Achieve a substantial return on (money or property) after making a small initial investment.

Synonyms of Pyramiding

Heap, Stack, Mound, Pyramid, Mass, Quantity, Bundle, Clump, Bunch, Jumble

How to use Pyramiding in a sentence?

1. The ancient Egyptians used the pyramids as tombs for the pharaohs and temples for their gods.
2. A bank can pyramid modest capital into an enormous sum of money.
3. What is the best way to do the gene pyramiding?.
4. A pyramid of logs.
5. The eventual collapse of illegal pyramids.