Fire Sale

(redirected from fire sales)
Also found in: Dictionary, Thesaurus, Wikipedia.

Fire Sale

A situation in which security prices are exceptionally low. This may be a buy signal, especially if the securities are fundamentally sound.
References in periodicals archive ?
At the same time, not all fire sales are without merit.
Moreover, our sense was that the consequences of a fire sale triggered by cross-default clauses, should LTCM fail on some of its obligations, risked a severe drying up of market liquidity.
Of course, a fire sale that transfers wealth from one set of sophisticated market players to another, without any impact on the financial system overall, should not be a concern for the central bank.
The price gyrations that would have evolved from a fire sale would have reflected fear-driven judgments that could only impair effective market functioning and generate losses for innocent bystanders.
This allows each store to keep fewer pieces of each style in stock, while providing more variety and avoiding fire sales of unwanted merchandise.