Stock Market Lingo, “Dry Powder”

Posted by Blain Reinkensmeyer on Wednesday June 14, 2006

Dry Powder is a phrase used to describe cash reserves that are kept when times are tough. So, let’s say company XYZ has had sales drop significantly over the last quarter and expects them to continue to drop. The CEO may say, “We need to make sure we have enough dry powder to make it into Q3 or else we are in trouble.” Next time you are with some colleagues and they mention a company in distress, ask them about the company’s dry powder. You should get a eyebrow raise or two, haha.

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2007-06-11 17:53:12
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