Investopedia

Continue to Site »

Lemon

Filed Under » , ,
Dictionary Says

Definition of 'Lemon'

A very disappointing investment. A lemon is an investment in which your expected return wasn't even close to being achieved, and more than likely ended up losing you some or all of the capital committed. Lemon investments can be associated with poor money management, economic factors, financial fraud or just plain bad luck.
Investopedia Says

Investopedia explains 'Lemon'

The most common and well-known example of a lemon is in the used car industry, where defective or poorly conditioned vehicles that are bought and sold by the purchaser without prior knowledge of the true state of the vehicle. There are, however, regulations in the U.S. that attempt to protect consumers in the event that they purchase a defective vehicle, known as Lemon Laws.

Articles Of Interest

  1.

    Did You Buy A Lemon?

    Find out how to fix a sour deal on your car purchase.

  2. Used Car Shopping: How To Avoid A Lemon

    Being prepared before buying will save you thousands in the long run.

  3. Wheels Of A Future Fortune

    Buy a quality car without driving your expenses through the roof.

  4. New Wheels: Lease Or Buy?

    These two major ways to obtain a car have very different advantages and drawbacks. Find out which is best for you.

  5. How To Avoid Buying A "Lemon" Product

    A lack of information can lead people into bad purchases and bad investments. Find out how you can avoid these lemons.

  6. Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.

  7. Car Shopping: New Or Used?

    Don't get taken for a ride. Learn the pros and cons before the salesperson makes a pitch.

  8. Mondelez Isn't As Good As Nestle, But Priced Like It Is

    Investors seem to bullish on Mondelez, given the relative performance at Kellogg and Nestle.

  9. How Spring Cleaning Can Make You Money

    Spring cleaning is a well-established tradition, but you can also make money by selling your unwanted goods.

  10. 5 Painless Ways To Save More Money

    Saving money can be a chore, but these tricks put money in your pocket with no effort at all.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center