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. Market Jitters

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

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

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

    In the investment world, this expression is used to describe ...
  5. Bankruptcy

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

    A period marked by severe investing losses. Bloodletting may ...
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. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center