A fire sale is the sale of goods at extremely discounted prices, typically when the seller faces bankruptcy or other impending distress. The term originated in reference to the sale of goods at a heavy discount due to fire damage. A fire sale may or may not be a closeout, the final sale of goods to zero inventory. Fire sales are thought to occur in the financial markets when bidders who value assets highly are prevented from bidding on them, depressing the average selling price below what it otherwise would be. This lowering of the price can cause even further issues because it may be inaccurately perceived as signaling negative information.
Famous quotes containing the words fire and/or sale:
“Over Sir Johns hill,
The hawk on fire hangs still;
In a hoisted cloud, at drop of dusk, he pulls to his claws
And gallows, up the rays of his eyes the small birds of the bay....”
—Dylan Thomas (19141953)
“I keep thinking that what I need
to do is buy my leg back.
Surely it is for sale somewhere,
poor broken tool, poor ornament.
It might be in a store somewhere beside a ladys scarf.”
—Anne Sexton (19281974)