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Username: LuckyWoman Rating:  Asked to: Jacob Rogers Date Created: 09 Feb 2018 |
| Category | 28 |
| Tag | Financial |
| Question | Please give the definition of 'Dead Money'. |
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Hello LuckyWoman, A slang term for money invested in a security with minor hopes of appreciation or earning a return. The stock may also be referred as dead money by analysts, as a warning to investors who might purchase the shares. Funds that are not earning interest or income are known as dead money. Some investors will hold a stock despite recent price drops, hoping that it will turn around and earn back some of the lost value. However, if the investment is dead money, the likelihood of a turnaround is low, and investors should consider selling the shares before incurring additional losses. |
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