White Elephant

AAA

DEFINITION of 'White Elephant'

Any investment that nobody wants because it will most likely end up being unprofitable. An unprofitable investment, property or business that is so expensive to operate and maintain that it is extremely difficult to actually make a profit. An item whose cost of upkeep is not in line with how useful or valuable the item is.

INVESTOPEDIA EXPLAINS 'White Elephant'

The term 'White Elephant' is derived from Thailand. According to stories, an albino (white) elephant was given to unfavored people by the ruler. Because these elephants were sacred, they were not permitted to work. The elephants became a burden to the owner because the animals would deplete the owner's money in the form of maintenance costs until the owner became destitute.

RELATED TERMS
  1. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions ...
  2. Falling Knife

    A slang phrase for a security or industry in which the current ...
  3. Value Investing

    The strategy of selecting stocks that trade for less than their ...
  4. Profit

    A financial benefit that is realized when the amount of revenue ...
  5. Investment Style

    The overarching strategy or theory used by either a retail investor ...
  6. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
Related Articles
  1. The Importance Of Diversification
    Bonds & Fixed Income

    The Importance Of Diversification

  2. Teaching Your Child To Be Financially ...
    Budgeting

    Teaching Your Child To Be Financially ...

  3. An Exploration Of The Development Of ...
    Economics

    An Exploration Of The Development Of ...

  4. A Beginner's Guide To Hedging
    Options & Futures

    A Beginner's Guide To Hedging

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center