What does "pennies on the dollar" mean?

"Pennies on the dollar" is a term often heard in money talks. It's used to describe a situation where you're getting something for significantly less than its original price. Suppose you find a brand-new bicycle that usually costs $100, but you snag it for $10. You just got a deal for pennies on the dollar!

The roots of the phrase “pennies on the dollar”

It’s a common phase in business, especially in debt-related transactions. You might have heard about creditors and collectors facing the potential loss of full repayment, settling for a significantly reduced amount or “pennies on the dollar.” Or investors buying foreclosed homes for “pennies on the dollar” at auction. It’s a figure of speech or idiom for getting (or selling) something for much less than it’s actually worth. 

"Pennies on the dollar" in everyday life

It’s not all about debts and finances. This phrase finds its way into our day-to-day lives, too. If you score a $500 designer dress for $50 at a thrift store, that’s pennies on the dollar.

"Pennies on the dollar" in business

Like the bankruptcy and debt-collection scenarios above, this phrase is also used to describe a company being bought or sold at a fraction of its actual value. Let’s say a small tech startup has been struggling and is in danger of going bankrupt. A larger company swoops in and offers to buy it for $1 million when its estimated worth could be closer to $10 million. In this case, the little fish is sold to the big one for pennies on the dollar.

So, the next time you hear "pennies on the dollar," you'll know exactly what it means. And who knows? You might find your own steal-of-the-century that makes you feel like a financial wizard.