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Dennis

Hyip Glossary

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• Referral Program (Affiliate Program) A money-making program where you earn money based on recruiting others into the program (Referring). Many companies usually pay for the refferals their users or members recruit a persent of the referrals' earnings or deposits.

• Compounding This is the concept that one earns interest on the interest he have already earned. At first, your money grows slowly, but as time passes, your money grows more rapidly.

• Diversification The concept of spreading the money among a number of different investments or investment programs in order to reduce risk. It's the idea that one shouldn't put all of your eggs in one basket.

• Downline The people one recruited (his referrals), plus the people they recruited, and so on.

• E-gold is an electronic currency, issued by e-gold Ltd., a Nevis corporation, 100% backed at all times by gold bullion in allocated storage. www.e-gold.com

• Forex (Foreign Exchange Market) for trading currencies internationally. The foreign exchange market, also referred to as the Forex and FX market, is a decentralized market that has no physical exchange floor. Trading is done over the counter, via phone, fax or electronic distribution networks. Turnover in this market is approximately $1.5 trillion USD daily, making it the largest, most liquid financial marketplace

• Ponzi Scheme The term Ponzi is derived from the actions of a man names Charles K Ponzi. It is any program or claimed investment opportunity which relies on new investments to pay off the older ones. Those whom invest first are thus paid their returns from those who invest after them, leaving the last investors the ones who lose out. Many HYIPs who claim to be trading, investing, etc are really only running a ponzi scheme. Some have also compared the US Social Security system to a ponzi scheme

• Principal The initial deposit one makes to the account. This excludes any compounded earnings added to the deposit. Many programs do not allow to withdraw principal. It damages the liquidity but assures the program owners that the money deposited to their system will remain there for long.

• Referral The one you recruited to join the program or to make an investment (your referral). Many companies usually pay for the refferals their users or members recruit a persent of referrals' earnings or of a deposit.

• Withdrawal The transaction when one transfers funds from any account in the HYIP or any other investment program to any account outside the program.

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