Dead Money Definition

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Definition Of 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, asa 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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