Internet
dead money
What does dead money mean?
Dead money is capital tied up in a security that shows little prospect of appreciation or income over the relevant horizon. The funds are effectively idle even while invested.
"That stock has gone nowhere for three years, it's just dead money."
Origin
Slang implying the money is 'dead'—not working or growing.
Frequently asked questions
What is dead money in investing?
It's capital tied up in a stock or asset that isn't appreciating or paying income, so the funds sit idle even though they're technically invested.
Why do investors call a stock dead money?
Because it's gone nowhere for a long stretch, offering neither price gains nor dividends, so the money could be earning more elsewhere.
Is dead money the same as a loss?
Not exactly. Dead money hasn't necessarily lost value; it just isn't growing, whereas a loss means the position is down.
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