buffer stock

A stock of a commodity owned by a government or trade organization and used to stabilize the price of the commodity. Usually the manager of the buffer stock is authorized to buy the commodity in question if its price falls below a certain level, which is itself reviewed periodically, to enable producers to find a ready market for their goods at a profitable level. If the price rises above another fixed level, the buffer stock manager is authorized to sell the commodity on the open market. Thus, producers are encouraged to keep up a steady supply of the commodity and users are reassured that its price has a ceiling. This arrangement is often effective, but may collapse during a boom or slump. See also United Nations Conference on Trade and Development

Big dictionary of business and management. 2014.

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  • buffer stock — ➔ stock1 * * *    Stock of commodities held by an international organization that will aim to stabilize prices and supplies by buying and selling from its stockpile. * * * buffer stock UK US noun [C or U] ► ECONOMICS, FINANCE a large supply of a… …   Financial and business terms

  • buffer stock — noun : a stock of a basic commodity (as tin) acquired (as by a cartel) in a period of low or unstable prices and distributed in a period of high prices to stabilize the market * * * buffer stock noun Stock held in reserve to minimize the effect… …   Useful english dictionary

  • Buffer stock — Pufferbestand (engl. buffer stock) ist die Bezeichnung für in Vorratslagern (sogenannten Ausgleichslagern) oder in Verteilsystemen gehaltenen Produkten oder Betriebsstoffen, um zum Beispiel auf die Veränderungen stark schwankender Preise… …   Deutsch Wikipedia

  • buffer stock — /ˈbʌfə stɒk/ (say bufuh stok) noun a stock of raw materials or finished goods which has been bought in times of plenty so as to tide one over during a period of scarcity or unexpected demand …   Australian English dictionary

  • buffer stock — Fin a stock of materials, or of work in progress, maintained in order to protect user departments from the effect of possible interruptions to supply …   The ultimate business dictionary

  • Buffer Stock — Marktausgleichslager für Rohstoffe, die dazu dienen sollen, Rohstoffpreise zu stabilisieren, indem Angebots und Nachfragemengen von der B. St. Verwaltung durch Käufe oder Verkäufe entsprechend dem Stabilisierungsziel beeinflusst werden.… …   Lexikon der Economics

  • buffer stock — noun a reserve of a commodity that can be used to offset price fluctuations …   English new terms dictionary

  • Buffer stock scheme — The buffer stock scheme is an economic term, referring to the use of commodity storage for economic stabilization. Specifically, commodities are bought and stored when there is a surplus in the economy and they are sold from these stores when… …   Wikipedia

  • stock — physical items ( inventory) that a business uses in its production process or has for sale in the ordinary course of doing business. Glossary of Business Terms Ownership of a corporation indicated by shares, which represent a piece of the… …   Financial and business terms

  • Stock — Ownership of a corporation which is represented by shares which represent a piece of the corporation s assets and earnings. The New York Times Financial Glossary * * * ▪ I. stock stock 1 [stɒk ǁ stɑːk] noun 1. [countable, uncountable] especially… …   Financial and business terms


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