DEFINITION of 'Lucrative'

To produce wealth. To be lucrative, means that an item or idea can create a large volume of income. Lucrative is generally use to describe something with the potential to make money. This can include anything from collecting coins, creating a new invention or idea, or a person. Lucrative can be used in both past and present tenses. If used in present terms there is no guarantee that a particular idea with be a profitable venture, but if used in the past tense it signifies that the idea has been proven to produce wealth.

BREAKING DOWN 'Lucrative'

For example, an analyst may suggest that a stock is highly lucrative. What the analyst is suggesting is that this stock has the potential to be profitable. People can suggest that the stock market is a lucrative place to make money, but it is also a place where large amounts of money can be lost. People will always have their own interpretation of whether an idea or item is lucrative.

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