What is ‘Dead Money’
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.
Explaining ‘Dead Money’
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.
Further Reading
- Dead money: Inheritance law and the longevity of family firms – journals.sagepub.com [PDF]
- Is the private finance initiative dead? – www.bmj.com [PDF]
- Dead pledges: mortgaging time and space – books.google.com [PDF]
- Is the USSR dead? Experience from the financial and economic crisis of 2008–2009 – online.ucpress.edu [PDF]
- Neoliberalism is dead, dominant, defeatable–then what? – journals.sagepub.com [PDF]
- The corrosive effects of neoliberalism on the UK financial crises and auditing practices: A dead-end for reforms – www.tandfonline.com [PDF]
