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Line 1: [[File:Bundesarchiv Bild 102-12314, Berlin, Friedrichstraße, Räumungsverkauf.jpg\|thumb\|right\|Closeout fire sale in Berlin, Germany, 1931. The sign says that the store is closing as it cannot afford the rent.]] [[File:Fire sale of the stock of Weston Bros. & Co.jpg\|thumb\|right\|Fire sale in Christchurch, New Zealand, c. 1933]] ~~Adiscount~~A '''fire sale''' is the sale of goods at extremely [[discounts and allowances\|discount]]ed prices. The term originated in reference to the ~~saledamage~~sale of goods at a heavy discount due to [[fire damage]]. It may or may not be defined as a [[Closeout (sale)\|closeout]], the final sale of goods to zero [[inventory]]. They are said to occur in the financial markets when [[Bidding\|bidders]] who value [[asset]]s 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 (economics)\|signalling]] negative information.<ref>{{cite journal\|url=http://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.25.1.29\|title=Fire Sales in Finance and Macroeconomics\|first1=Andrei\|last1=Shleifer\|first2=Robert\|last2=Vishny\|date=\|journal=Journal of Economic Perspectives\|volume=25\|issue=1\|pages=29–48\|accessdate=20 April 2018\|doi=10.1257/jep.25.1.29}}</ref> ==Examples== Line 8: *Taking advantage of purchasing opportunities by acquiring more companies in the software world.<ref>{{cite web \|url=https://www.designnews.com/automation-motion-control/buying-software-companies-nasdaq-fire-sale/92096488336025 \|title=Buying up software companies in the NASDAQ fire sale\|date=July 5, 2001\|website=www.designnews.com \|publisher=Design News \|accessdate=31 July 2018}}</ref> == History == and M. W. Hayward, groceries. Maraton Upton removed his stock to No. 9 Rollstone block, and advertised "Extraordinary fire sale; customers are invited to call and examine goods which are still warm."<ref>{{cite book\|title=Proceedings of the Fitchburg Historical Society and Papers Relating to the History of the Town Read by Some of the Members\|volume=iii\|location=Fitchburg, Massachusetts\|publisher=Historical Society\|year=1902\|page=210}}</ref></blockquote>▼ The term is adapted from reference to the sale of fire-damaged goods at reduced prices. In ''Proceedings of the Fitchburg [Mass.] Historical Society and Papers Relating to the History of the Town Read by Some of the Members'' the following entry is found: ▲<blockquote>In December, 1856, the account of an extensive fire in the American House mentions the following occupants: E. B. Gee, clothing; T. B. Choate, drugs; J. C. Tenney, boots and shoes; Maraton Upton, dry goods; and M. W. Hayward, groceries. Maraton Upton removed his stock to No. 9 Rollstone block, and advertised "Extraordinary fire sale; customers are invited to call and examine goods which are still warm."<ref>{{cite book\|title=Proceedings of the Fitchburg Historical Society and Papers Relating to the History of the Town Read by Some of the Members\|volume=iii\|location=Fitchburg, Massachusetts\|publisher=Historical Society\|year=1902\|page=210}}</ref></blockquote> The term also has a counterpart in "railroad salvage", the discount sale of goods damaged in derailment or other accidents.

Fire sale: Difference between revisions