What does dry stock mean?

Dry stock in finance refers to a type of financial asset that does not pay dividends or interest. This can include stocks that do not pay dividends, bonds that do not pay interest, or other securities that do not provide any form of regular income to the holder. As a result, dry stock investments rely solely on capital appreciation for potential returns, meaning that the value of the asset must increase in order for the investor to profit. This contrasts with income-generating securities, which provide regular cash flows to the investor in the form of dividends or interest payments. Investing in dry stock can be more speculative and risky, as the investor is relying on the potential for price appreciation rather than a steady stream of income. However, dry stock investments also have the potential for higher returns, as successful investments can result in significant capital gains. Overall, dry stock refers to financial assets that do not provide regular income to the investor, requiring them to rely on the potential for capital appreciation as the primary source of return.