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.
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Famous quotes containing the words fire and/or sale:
“Physical force has no value, where there is nothing else. Snow in snow-banks, fire in volcanoes and solfataras is cheap. The luxury of ice is in tropical countries, and midsummer days. The luxury of fire is, to have a little on our hearth; and of electricity, not the volleys of the charged cloud, but the manageable stream on the battery-wires. So of spirit, or energy; the rests or remains of it in the civil and moral man, are worth all the cannibals in the Pacific.”
—Ralph Waldo Emerson (1803–1882)
“People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
—Friedrich Nietzsche (1844–1900)