dead money
Money in a position that isn't appreciating or paying anything.
Definitions
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.
dead money In A Sentence
Origin & Usage
Slang implying the money is 'dead'—not working or growing.
People Also Ask
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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