TRADING STOCK Definition

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TRADING STOCK see TRADING SECURITIES.

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LIFO RESERVE is the difference between the ending inventory under LIFO and FIFO (or other method that might be chosen).

FINANCIAL GEARING reflects any borrowing that the company may have undertaken. Operating income will become more volatile with increased financial gearing (borrowing). Thus the shares will have more risk attached to them. More borrowing, more risk. See GEARING and OPERATIONAL GEARING.

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