Free Lunch

Filed Under » , ,
Dictionary Says

Definition of 'Free Lunch'

A situation in which a good or service is received at no cost, with the true cost of the good or service ultimately borne by some party, which may even include the recipient. A "free lunch" was often offered during the 1800s to bar patrons who ordered drinks as a way of bringing in more business, though in modern times the term is used to describe anything purportedly received for free. From this, "free lunch" became an investment slang term referring to unlimited riskless profits.

Investopedia Says

Investopedia explains 'Free Lunch'

The phrase "there's no such thing as a free lunch" is commonly used to describe situations in which investors are not able to consistently make large profits without bearing the risk of a potential loss. 

For example, a free breakfast offered by a hotel to entice consumers to stay the night is not free, as the hotel room is still being paid for. Likewise, while investors can continue to make money in a bull market, there is an underlying cost - risk.

Search results for

'Free Lunch'

  • Discount Dining Offers No Free Lunch For Investors

    http://stocks.investopedia.com/stock-analysis/2009/Discount-Dining-Offers-No-Free-Lunch-For-Investors-RT-DIN-EAT-BOBE-CBRL0713.aspx
    ... Article; Comments (0). Discount Dining Offers No Free Lunch For Investors.
    Posted: Jul 13, 2009 10:34 AM by Eugene Bukoveczky. ...

  • What Countries Get For Their High Taxes Slideshow | Investopedia

    http://www.investopedia.com/slide-show/countries-high-taxes/no-free-lunch.aspx
    ... unsustainable over the long term. No Free Lunch. The future of socialism in
    Europe is very much in doubt. Several countries are teetering ...

  • What Countries Get For Their High Taxes Slideshow | Investopedia

    http://www.investopedia.com/slide-show/countries-high-taxes/no-free-lunch.aspx?lastSlide=1
    ... unsustainable over the long term. No Free Lunch. The future of socialism in
    Europe is very much in doubt. Several countries are teetering ...

  • Emerging Market ETFs - More Growth And Less Overall Volatility

    http://stocks.investopedia.com/stock-analysis/2011/Emerging-Market-ETFs---More-Growth-And-Less-Overall-Volatility-GXC-EPI-RSX-EWZ-IDX-VWO-EEM0602.aspx
    ... One of the most common expressions in finance and economics is that there is no
    such thing as a free lunch; greater return means greater risk, or at least a ...

  • How Long Will The Dividend Stock Craze Last?

    http://stocks.investopedia.com/stock-analysis/2012/How-Long-Will-The-Dividend-Stock-Craze-Last-LLY-WMT-KFT-SDY-SPY0110.aspx
    ... There's no free lunch, as they say, and that holds true in investing. ... If there is
    anything close to a free lunch in investing, it might be the dividend. ...

  • If my mortgage lender goes bankrupt, do I still have to pay my ...

    http://www.investopedia.com/ask/answers/07/mortgage-lender-bankrupt.asp
    ... obligation. Sorry to disappoint, but there is no free lunch in this. ... Sorry to
    disappoint, but there is no free lunch in this situation. In ...

  • Introduction To Inflation-Protected Securities

    http://www.investopedia.com/articles/04/091504.asp
    ... This fact alone makes IPSs good candidates for helping to create a balanced portfolio;
    furthermore, they are the closest thing to a "free lunch" that you will ...

  • Equity Premiums: Looking Back And Looking Ahead

    http://www.investopedia.com/articles/stocks/06/equitypremium.asp
    ... During this time, global investing was a true "free lunch", where you could
    pick up additional return with little additional risk. ...

  • Don't Be Fooled By SPINdex Funds - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1209/Dont-Be-Fooled-By-SPINdex-Funds.aspx
    ... is futile. In the rare case a computer model did beat the market, how long
    should we expect this free lunch to last? The SEC requires ...

  • 6 Rules For Maximizing Your Business Lunch - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/6-Rules-For-Maximizing-Your-Business-Lunch.aspx
    ... 6 Rules For Maximizing Your Business Lunch. ... Don't Overdrink Sure, you don't want
    to get drunk at a business lunch, but alcohol isn't the subject this time. ...

Related Articles

Trading Center
Partner Links