buffer stock

buffer stock definition - business

buffer stock

Reserve units of a good that are utilized to moderate price fluctuations. For example, the government may accumulate a commodity such as wheat during years of surplus production and low prices and sell from the stock during years of shortage and high prices.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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