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loss-generating investment JUST WRITTEN FOR YOU

/lɔs ˌdʒɛn ərətɪŋ ɪnˈvɛs tˌmɛnt/ · los gen er at ing in vest ment
noun
  1. An investment that is expected to result in a loss, often due to its high risk or poor market conditions. The portfolio manager warned that the loss-generating investment could potentially wipe out the entire fund's returns.
  2. A type of investment that generates losses, often used as a tax deduction or to offset gains from other investments. The company's loss-generating investments were used to reduce its taxable income for the year.
Did you know? The concept of loss-generating investments is closely tied to the idea of 'hedge funds,' which are investment vehicles that use complex strategies to generate returns, often with the potential for significant losses.
Written by Lexi Wordsworth, Dictionary Editor 0 lookups Added Jul 16, 2026