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I firm will and should keep safety stock if the cost of stocking out, is higher then the cost of carrying the inventory.
Example, a sporting goods store has a demand of 5 Baseball bats per week. Yet, there is a 50% probility that they will sell 6 bats. That cost of not having that bat in stock will cost the store (in the simple example, the cost would be the contribution margin, aka profit from selling that bat).
On the other had the store might only sell 5 bats, and have one extra, yet that cost to "carry" the inventory, in most cases is less then the cost of the loss of the sale.
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Why might a bond agreement limit the amount of assets that the firm can lease?
Lease obligation is like debt in that both legally obligate the firm to make a series of specified payments. bondholders would like the firm to limit its lease obligation for the same reason that bondholders desire limit on debt: to keep the firm's financia burden at manageable levels and to make the already existing debt safer.
When do you use hold in stock market jargon?
Hold means you buy stock and keep it a long time.
In the context of the shareholder wealth maximization model discuss the managerial actions that can influence the value of the firm?
Managerial actions that can influence the value of the firm include preserving the reputation of the firm by being ethical and responsible. Also, they need to invest in providing quality services and products that will keep the firm competitive.
How do you sell stocks short?
Short selling consists of borrowing someone else's stock and selling them. You would do this since you believe that thestock will drop in price, which will allow you to buy it back at a cheaper price. It is the same concept as "buy low, sell high" but in reverse order. You will need a margin account with a brokerage firm to do this. A margin account is a brokerage account that allows you to borrow money or stock for the purpose of investing. When your brokerage firm receives your sho sell order, it will first check to see if there is another client in their firm that is holding the stock you wish to short sell in their margin account. You are not allowed to borrow the stock from an account that isn't a margin account. If the shares are available, you will be able to sell it. Short selling has a special rule called he "downtick rule". This means that your order will not execute if the last trade price on the stock was lower than the previous trade price. In other words... if the stock you wish to short sell last traded at $10 and the trade before that was at $11, your trade order will not execute until the stock "ticks" up in price. This rule was implemented to prevent short sale orders from driving down the prices of the stock during volitile and frenzied tradiing sessions. Sometimes, you may be forced to buy back the stock before you wish. This will happen because the person from whom you borrowed the stock (the identity of which you will never know) may decide to sell their shares and your brokerage firm cannot find someone else from whom you can borrow shares. This is an important risk to keep in mind when short sellling... you may be forced to buy the shares back even though you may not want to. In order for a stock to be "short-saleable", it has to be considered "marginable". there are federal rules on what makes a marginable stock, but many brokerage firms implement margin rules that are more stringent than the feds. Thus, a stock that is considered marginable in one brokerage firm, may not be marginable at another.
Does the value of a share of stock depend on how long you expect to keep it?
yes
How con i earn money by stock exchange?
You can earn money through stock exchange by buying only the high quality stocks, and ensuring that you keep within the margin of safety.
Why do shop keeper use spreadsheet?
To keep track of what stock they have in the shop.
What is the Twitter account for LeClair Ryan?
The Twitter account is for a law firm business, called The Law Firm of LeClair Ryan. It was made to keep people informed with the personal law firm, and any interesting new they might want to share with all their followers.
The responsibility of a mom?
keep you kids happy but be firm with your answers but not too firm
How do you keep kiwi firm after it is sliced?
Keep the kiwi chilled after it is sliced.
What are some quotes for science safety symbols?
A good slogan for science safety goggles might be 'You don't have to be a rocket scientist to know how serious safety is! Don't forget those safety goggles.' You might also say 'Science is more fun when you keep it safe. Wear those safety goggles.'
What will cause the door locks to keep clicking to lock over and over while driving a 2004 trailblazer?
it might be a safety thing
Where can I get a safety harness vest?
It's important to keep yourself protected on the job, and if you have a position that requires safety you might want to check out the following website: http://www.snugharness.com/Harnesses/Vest-Harnesses/
Is it possible for a firm to become too big to be competitive and make a profit?
A firm may become so large and successful that they are no longer competing with smaller businesses who cannot keep up. This might inhibit their ability to continue to make profits.
When trading is it more profitable to keep stock or to sell stock?
When you trade you must do so with a plan, so depending on that plan keeping the stock might or not be a good idea. If you are trading a stock based on fundamentals and a long term strategy, maybe keeping it might be a good way to go. But if instead you are in the market for short term gains (swing or day trading for instance) then you will only keep the stock for days or even hours, and you will be locking in small profits regularly. It is all a matter of how do you intend to tackle the market and what is your goal in terms of ROI and other factors. The starting point is a plan, a strategy, from there you will be able to determine whether it is a good idea to keep a stock or sell it.
What is fills the centre of the cell to keep it firm?
The cytoplasm does.
Why might a bond agreement limit the amount of assets that the firm can lease?
Lease obligation is like debt in that both legally obligate the firm to make a series of specified payments. bondholders would like the firm to limit its lease obligation for the same reason that bondholders desire limit on debt: to keep the firm's financia burden at manageable levels and to make the already existing debt safer.
