O'Reilly logo

The Finance Book by Si Hussain, Stuart Warner

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

11 Stock

‘I was always a kid trying to make a buck. I borrowed a dollar from my dad, went to the penny candy store, bought a dollar’s worth of candy, set up my booth, and sold candy for five cents apiece. Ate half my inventory, made $2.50, gave my dad back his dollar.’

Guy Fieri, restaurateur, author, TV personality

In a nutshell

Stock (or inventory) is normally one of the largest assets in the balance sheet of manufacturing/retailing businesses. It is through the sale of stock that a business earns revenue.

Stock carries significant commercial risks for a business. Excessive stock can result in liquidity problems and risks of non-saleability. Too little and a business may miss out on sales opportunities or lose customers.

Stock must be counted ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required