Free Lunch

Free Lunch

A situation in which a good or service is received at no cost, with the true cost of the good or service ultimately borne by some party, which may even include the recipient. A "free lunch" was often offered during the 1800s to bar patrons who ordered drinks as a way of bringing in more business, though in modern times the term is used to describe anything purportedly received for free. From this, "free lunch" became an investment slang term referring to unlimited riskless profits.

The phrase "there's no such thing as a free lunch" is commonly used to describe situations in which investors are not able to consistently make large profits without bearing the risk of a potential loss.

For example, a free breakfast offered by a hotel to entice consumers to stay the night is not free, as the hotel room is still being paid for. Likewise, while investors can continue to make money in a bull market, there is an underlying cost - risk.


Investment dictionary. . 2012.

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  • free lunch — ☆ free lunch n. [from the former practice in some saloons of offering free lunches to purchasers of drinks] Informal something that costs nothing: often used in negative constructions, suggesting hidden obligations or the shifting of liability to …   English World dictionary

  • free lunch — free′ lunch′ n. cvb something given with no expectation of repayment or obligation • Etymology: 1835–45 …   From formal English to slang

  • Free lunch — The phrase free lunch, in U. S. literature from about 1870 to 1920, refers to a tradition once common in saloons in many places in the United States. These establishments included a free lunch, varying from rudimentary to quite elaborate, with… …   Wikipedia

  • free lunch — noun something acquired without effort or payment or obligation there is no free lunch in politics or Hollywood • Hypernyms: ↑gift * * * I. noun : a buffet lunch formerly available in certain bars or saloons to those buying drinks II. noun :… …   Useful english dictionary

  • free lunch —    The expression there s no such thing as a free lunch means that nothing is free. If somebody helps you, they always expect some form of payment in return.     If you accept his offer, he ll be forever asking you for favours. There s no such… …   English Idioms & idiomatic expressions

  • free lunch — /fri ˈlʌntʃ/ (say free lunch) noun 1. US food given without charge, as in a hotel to encourage the purchase of drinks. –phrase 2. there s no such thing as a free lunch, (an expression used to communicate the view that anything which appears to be …  

  • free lunch — n. something free. (Often negative.) □ There is no such thing as a free lunch. □ There’s always somebody who’ll do anything to get a free lunch …   Dictionary of American slang and colloquial expressions

  • free lunch — 1. food provided without charge in some bars and saloons to attract customers. 2. Informal. something given with no expectation of repayment, service, responsibility, etc.: In politics there s no free lunch everyone expects favors to be repaid.… …   Universalium

  • free lunch —  Something for nothing proverbially, what there is no such thing as. In business the saying “there’s no such thing as a free lunch” means that everything has a cost …   American business jargon

  • Free lunch (disambiguation) — Free lunch is an English expressionIt can also refer to:* Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense and Stick You With The Bill , a book by David Cay Johnston * The Free Lunch, a novel by Spider Robinson *… …   Wikipedia

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