financial pyramid

Investment structure designed to break up investments into three main levels (low, middle and high), which correlate with a risk level. Smart and cautious investors will usually put a bulk of investment at the lowest level of the pyramid to ensure profitability and stability. The remaining investments are placed at the middle and high levels depending on the investor's confidence in the investment, and the amount of risk they are willing to take on. A strong base or lower level of the pyramid is essential for investors to fall back on if other middle and high level investments fail.

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