Posted in Finance, Accounting and Economics Terms, Total Reads: 325
Lucrative means ability to be profitable. If an item or an idea is lucrative it means that it can create a lot of wealth. It can be a profit making centre.
It can be used in past and present tenses. If it is used in present tense then it means there is no guarantee that a particular item will be money making venture, but if used in the past tense then it means it has proved itself. For instance, he inherited a lucrative business from his father.
A trader may suggest that a particular mutual fund is lucrative hence may give strong buy rating, suggesting investors to buy that particular stock.
Similarly venture capitalist may invest in a startup after analyzing it and thinking it to be lucrative but there is no guarantee that it will be lucrative in the long run.