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English definition of “buffer stock”

buffer stock

noun [C or U]
 
 
ECONOMICS, FINANCE a large supply of a commodity (= a crop, metal, fuel, etc.) that is bought and stored when extra is available, and sold when there is not enough, in order to control its price and quantity in the economy: Rubber prices fell to a four-year low, despite purchases for the buffer stock.
COMMERCE, PRODUCTION extra products, supplies, etc that a company keeps, so it always has enough available to sell or use: Management wants to keep a buffer stock of 500 units.
(Definition of buffer stock from the Cambridge Business English Dictionary © Cambridge University Press)
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