Lame Duck

AAA

DEFINITION of 'Lame Duck'

1. A person who has defaulted on his or her debts or has gone bankrupted due to the stock market. The phrase is said to have originated from the London Stock Market during the 1700s and was used to describe individuals who were ineffective traders.

2. A politician who has chosen not to seek re-election, is ineligible to run for office again or has lost an election but is still in office until the election winner takes control of the office.

INVESTOPEDIA EXPLAINS 'Lame Duck'

1. A trader or investor who makes poor trades and ends up with heavy losses over time would be considered a "lame duck."

RELATED TERMS
  1. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  2. Bloodletting

    A period marked by severe investing losses. Bloodletting may ...
  3. Market Jitters

    Feelings of nervousness created by uncertainty or fear about ...
  4. Bottom Fisher

    An investor who looks for bargains among stocks whose prices ...
  5. Bubble

    1. An economic cycle characterized by rapid expansion followed ...
  6. Losing Your Shirt

    In the investment world, this expression is used to describe ...
Related Articles
  1. Insurance

    The Causes And Effects Of Credit Shocks

  2. Budgeting

    Digging Out Of Debt In 8 Steps

  3. Investing Basics

    The Dirt On Delisted Stocks

  4. Budgeting

    10 Biggest Losers In Finance

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center