What is dry stock?

Dry stock in finance refers to a type of investment that involves purchasing shares of a company that does not pay dividends. This means that the investor does not receive regular income from their investment, as the company does not distribute profits to shareholders in the form of dividends. Investing in dry stock can be seen as a more speculative and long-term approach to investing, as the potential for returns is based on the appreciation of the stock price over time rather than through regular income payments. This type of investment is often associated with growth stocks, which are companies that reinvest their profits into the business rather than paying dividends to shareholders. Investors who are interested in dry stock may be more focused on capital appreciation and the potential for long-term growth in the value of their investment. However, it is important to note that investing in dry stock carries a higher level of risk, as the lack of dividend payments means that there is less certainty of returns in the short term. Overall, dry stock can be an attractive option for investors who are willing to take on more risk in exchange for the potential of higher returns through capital appreciation. However, it is important to carefully consider the investment objectives and risk tolerance before investing in dry stock.