Dry powder
Encyclopedia
Usage of the term dry powder originated during infantry
battles fought during the era of gun powder and cannon
s. The gun powder had to be kept dry to be effective. It was stored in containers that were as waterproof as the technology of the times allowed, but this was not always reliable. Therefore, when the weather turned wet, commanding officers had to be concerned about retaining adequate stocks of the dry powder to effectively wage their battles.
The term is now used metaphorically in a variety of contexts. In business, unused financial capital
must be kept in reserve for use in executing timely transactions. For example, homebuilders refer to keeping dry powder on hand to use when the real estate
market becomes favorable. In other words, they need to have adequate cash reserves or accessible credit to purchase land and/or buildings when the investment climate is right.
Infantry
Infantrymen are soldiers who are specifically trained for the role of fighting on foot to engage the enemy face to face and have historically borne the brunt of the casualties of combat in wars. As the oldest branch of combat arms, they are the backbone of armies...
battles fought during the era of gun powder and cannon
Cannon
A cannon is any piece of artillery that uses gunpowder or other usually explosive-based propellents to launch a projectile. Cannon vary in caliber, range, mobility, rate of fire, angle of fire, and firepower; different forms of cannon combine and balance these attributes in varying degrees,...
s. The gun powder had to be kept dry to be effective. It was stored in containers that were as waterproof as the technology of the times allowed, but this was not always reliable. Therefore, when the weather turned wet, commanding officers had to be concerned about retaining adequate stocks of the dry powder to effectively wage their battles.
The term is now used metaphorically in a variety of contexts. In business, unused financial capital
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....
must be kept in reserve for use in executing timely transactions. For example, homebuilders refer to keeping dry powder on hand to use when the real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
market becomes favorable. In other words, they need to have adequate cash reserves or accessible credit to purchase land and/or buildings when the investment climate is right.