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Warning
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Simple English definitions for legal terms
dead stock
Read a random definition: wrong
A quick definition of dead stock:
Dead stock refers to items that are still in a store's inventory but are not selling because there is no demand for them. This means that they are not making any money for the store and are taking up valuable space. It's like having a toy that nobody wants to play with anymore and just sits in the toy box.
A more thorough explanation:
Definition: Dead stock refers to goods that remain unsold in inventory because there is no demand or market for them.
Example 1: A clothing store has a large inventory of winter coats in the middle of summer. Since customers are not looking for winter coats during this season, the coats become dead stock.
Example 2: A bookstore has a large inventory of outdated textbooks that are no longer used in schools. Since there is no demand for these textbooks, they become dead stock.
Both examples illustrate how dead stock occurs when there is no market or demand for certain products. This can result in a loss of profits for businesses as they are unable to sell these products and may have to eventually discount or dispose of them.