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 typically one of the largest assets in the balance sheet of any manufacturing /retailing business. It is through the sale of stock that a business generates revenue and profit.
Holding stock carries significant commercial risks as it ties up cash. Stock may cause liquidity problems if it cannot be sold on a timely basis or result in losses if it cannot be sold at a high enough price. Conversely, ...
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