Legal Definitions - dead stock

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Example 2: A bookstore has a large inventory of outdated textbooks that are no longer used in schools.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.