A Stock Out Occurs When a Firm Runs Out of Inventory

question 62

True/False

A stock out occurs when a firm runs out of inventory and is unable to sell or deliver the product requested.

---

Definitions:

Institutional Investors

Institutional investors are organizations such as pension funds, insurance companies, and mutual funds that invest large sums of money in securities and assets.

Angel Investor

A wealthy individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Divestitures

The process of selling off subsidiary business interests or investment by a company, often to optimize its assets.

Sell-Offs

Rapid selling of securities or assets by investors, often due to the anticipation of lower prices.