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. The Causes And Effects Of Credit Shocks
    Insurance

    The Causes And Effects Of Credit Shocks

  2. Digging Out Of Debt In 8 Steps
    Budgeting

    Digging Out Of Debt In 8 Steps

  3. The Dirt On Delisted Stocks
    Investing Basics

    The Dirt On Delisted Stocks

  4. 10 Biggest Losers In Finance
    Budgeting

    10 Biggest Losers In Finance

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center