Definitions (2)

1. A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets, since they can be converted into cash quite easily. There are various means of valuing these assets, but to be conservative the lowest value is usually used in financial statements.
2. The securities bought by a broker or dealer in order to resell them. For the period that the broker or dealer holds the securities in inventory, he/she is bearing the risk related to the securities, which may change in price.

Use inventory in a sentence

Fast food establishments keep their inventory count quite low to maximize available floor space, prevent spoilage and keep overall costs down.

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The company has many new computers in its inventory which it hopes to distribute and sell at major retailers across the country.

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In order for a business to be financially viable, it must have a strong inventory control system in place, and must follow that system.

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asset-based lenders materials management