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Dry Hole

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Dictionary Says

Definition of 'Dry Hole'

A business venture that ends up being a loss. The buzz word "dry hole" was originally used in oil exploration to describe a well where no significant reserves of oil were found. This term is now often used to describe any fruitless commercial initiative.

Investopedia Says

Investopedia explains 'Dry Hole'

Newer businesses often run at a net loss for the first few years (while acquiring one-time expenses such as equipment and buildings) before becoming profitable; however, these are not usually referred to as dry holes. A dry hole is typically thought to never be able to produce a profit.

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