Distress Sale

Distress Sale – A distress sale is one where assets are being sold due to some unexpected emergency. It is where funds are needed and the something happen beyond the ability of an owner to handle without having to sell off some assets. These are sales where there is no concern over making a profit. In stocks this might involve where there is what is called a “margin call.” That is where there is a margin call for payment because the value of shares is less than what person owes on them because of a loan with a margin between their possible worth and actual worth.