Dry powder definition
The term dry powder refers to the amount of cash reserve or liquid securities kept readily on hand by an investor to cover potential future costs and obligations. Dry powder includes any and all marketable securities that can be liquidated on short notice.
What does ‘keep the powder dry’ mean?
Keep the powder dry is a reminder for an individual to keep some liquid assets or cash reserves on hand to utilise quickly if needed. Investors may ‘keep the powder dry’ so they are ready to invest in new opportunities or fuel growth in current companies at a moment’s notice.