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. Sharing Economy

    An economic model in which individuals are able to borrow or ...
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. 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