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Jackpot definition, the chief prize or the cumulative stakes in a game or contest, as in bingo, a quiz contest, or a slot machine. See more.


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For example, investors who purchase stock in an initial public offering IPO hit the jackpot if the company they back experiences a dramatic and swift rise in share price, allowing the investors to cash out with substantial profit. What Is a Robo-Advisor? Investing Investing Essentials. Estate Planning. What is a Jackpot A jackpot is a large windfall derived from an act of gambling. Those fortunate enough to find themselves newly rolling in cash may find the temptation to go out on a buying spree difficult to resist, but their future financial health could depend on it. Extra Dividend An extra dividend is a one-time special dividend that a company pays to shareholders in addition to its regularly scheduled dividends. Retained Earnings Retained earnings are the cumulative net earnings or profit of a firm after accounting for dividends. Jackpot entered the English lexicon via a 19th-century variant of five-card-draw poker which required a player to declare a hand with a pair of jacks or better in order to open bidding. Tax treatments vary based upon the origin of the windfall, however, and not all jackpots pay out the same way. Investing Essentials. Pension Plan A pension plan is a retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit. Day Trading. Personal Finance. Partner Links. Some people refer to them as the earnings surplus. Related Terms Form W-2G: Certain Gambling Winnings Form W-2G is a document showing how much an individual won from gambling activities and what amount, if any, was already withheld for taxes. Popular Courses. The use of jackpot as a financial term stems from a more colloquial broadening of its definition to a large and unexpected win.

A jackpot is a large windfall derived from an act of gambling. First and foremost, jackpoty are typically subject to taxes. Compare Accounts. In finance, jackpots refer to large investment returns reaped over a short period of time.

The meaning broadened throughout the gambling industry, generally describing situations in which winnings build over a series of time before paying out, such as slot machines or lottery games. Even a large windfall will run out, and the amount of time it takes to burn through that cash may not be nearly as long as one might imagine.

Your Money. How Lump-Sum Payments Work A lump-sum payment is a large sum that jackpoty paid in one single payment instead of installments.

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Players contributed an ante prior to each deal, so a series of hands during which nobody could lay claim to anything better than a pair of tens would increase the size of the pot. Liquidating a lucrative investment jackpoty often means capital gains taxes.

The offers that appear in this jackpoty are from partnerships from which Investopedia receives compensation. Lifestyle Advice. Your Practice. After tax planningfinancial advisors typically suggest that individuals who have hit the jackpot take it slow with large-ticket impulse spending.

For example, some lottery payouts offer winners a choice between a lump sum and an annuitized payout that offers periodic payments. Regardless of its origin, a financial windfall can generate more challenges than investors might anticipate, especially if they do not understand the consequences of receiving a large amount of money at one time.

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