Drop parties

I am sorry if a sound like a newb , but the defintion and point of the drop party has eluded me. Firstly what exactly is a drop party and secondly (if its just a party where u drop vaulebale stuff) then what is the point?..you LOSE money.

its fun to pick all the items up, a drop party is where everyone drops something, its cool, i dropped full rune the other day

Finally someone replied and thank you