Dry Powder

Filed Under » , ,
Dictionary Says

Definition of 'Dry Powder'

A slang term referring to marketable securities that are highly liquid and considered cash-like. Dry powder may also refer to cash reserves kept on hand to cover future obligations or purchase assets, if conditions are favorable. Securities considered to be dry powder could be Treasuries, or other fixed income investments, and can be liquidated on short notice, in order to provide emergency operational funding or allow an investor to purchase assets.
Investopedia Says

Investopedia explains 'Dry Powder'

Having dry powder on hand can provide businesses and investors with an advantage over others holding less liquid assets. For example, if a venture capitalist expects IPO markets to sour, you might hear him say something like, "we want to keep enough dry powder around to keep funding our companies through these hard times."

Search results for

'Dry Powder'

  • Profit on 'Gaps' in Closed-End Funds

    http://stocks.investopedia.com/stock-analysis/moneyshow/ProfitonGapsinClosed-EndFunds.aspx
    ... We want to have what we refer to as dry powder, and by partnering up with DoubleLine,
    DoubleLine manages a fixed income portfolio, which serves as our dry ...

  • Bouncing Back From A Portfolio Hit

    http://www.investopedia.com/articles/stocks/08/knockout.asp
    ... wind. 1. Check For Dry Powder Most infantrymen know the usefulness of keeping
    some gun powder dry - just in case they might need it. ...

  • ABB Needs To Power Up

    http://stocks.investopedia.com/stock-analysis/2011/ABB-Needs-To-Power-Up-ABB-SI-EMR-ROK-SBGSY0222.aspx
    ... Not only does the company have a clean balance sheet and ample dry powder for
    acquisitions, but ABB has more emerging market exposure than almost any other ...

  • VF Corp Could Return To Acquisition Mode

    http://stocks.investopedia.com/stock-analysis/2010/VF-Corp-Could-Return-To-Acquisition-Mode-VFC-M-BKE-TRLG-JOEZ0901.aspx
    ... An undervalued share price hurts the ability to use equity for acquisitions, but
    strong cash flow generation leaves plenty of dry powder to buy market share ...

  • Hewlett-Packard Taking It Easy With Hardware

    http://stocks.investopedia.com/stock-analysis/2010/Hewlett-Packard-Taking-It-Easy-With-Hardware-HPQ-SAP-SY-PALM-ACN0520.aspx
    ... Free cash flow exceeded reported net income during the Q2 and is leaving plenty
    of dry powder for acquisitions, share repurchases and dividends to support a 0.7 ...

  • Lights Out At Acuity Brands

    http://stocks.investopedia.com/stock-analysis/2010/Lights-Out-At-Acuity-Brands-AYI-LOW-CBE-PHG-HUB.B-HUB.A0705.aspx
    ... more dire. Net debt also remains a negligible proportion of total
    capitalization and leaves dry powder for future acquisitions. It ...

  • Gilead's Uncertain Future

    http://stocks.investopedia.com/stock-analysis/2010/Gileads-Uncertain-Future-GILD-BMY-JNJ-LLY-FRX0426.aspx
    ... sheet. This provides some dry powder should it wish to pursue acquisitions
    as another means to diversify into new drugs. The low ...

  • Balance Your Assets for a Choppy Market

    http://stocks.investopedia.com/stock-analysis/moneyshow/BalanceYourAssetsforaChoppyMarket.aspx
    ... It surely happened last year, and thatÂ’s nothing new. So, you always want to
    have some cash on hand. We like to think of it as dry powder. ...

  • How Should Apple Spend Its Money? - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0810/How-Should-Apple-Spend-Its-Money.aspx
    ... With so much dry powder in the arsenal and persistent rumors about the health and
    legacy of CEO Steve Jobs, it seems reasonable to ask how the company might ...

  • Natural Gas Impairment Charges Pile Up

    http://stocks.investopedia.com/stock-analysis/2012/Natural-Gas-Impairment-Charges-Pile-Up-MHR-BRY-BBG-GDP-SM0302.aspx
    ... Barrett has approximately 159,000 gross acres in the Powder River Basin and reported ...
    to the Haynesville Shale, Cotton Valley Sands and other dry gas formations ...

Related Articles

Partner Links