Deposit and Dry powder: Difference between pages

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imported>Doug Williamson
(Create page. Sources: Business dictionary http://www.businessdictionary.com/definition/dry-powder.html & Divestopedia https://www.divestopedia.com/definition/6034/dry-powder)
 
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1. A sum of money paid by a buyer as part of the sale price of something in order to reserve it. 
1.  
The deposit may or may not be returned if the sale is not completed.
 
Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure.
 
 
2. ''Mergers & acquisitions (M&A)''.
 
In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions.


2. A sum of money lent to or placed with a financial organisation, such as a bank, for a set period or an indeterminate period for safekeeping or to earn interest or as a security to cover potential trading losses.


== See also ==
== See also ==
* [[Depositor]]
* [[Near-cash]]
* [[Hot money]]
* [[Reserves]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Cash_management]]

Revision as of 10:37, 19 July 2019

1.

Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure.


2. Mergers & acquisitions (M&A).

In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions.


See also