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Investments glossary

Channel Stuffing

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Quotes of the day:

Chains are chains even if made of gold, they just tie you.

— Patrick Mahony

Channel stuffing is a deceptive business practice used by a company to inflate its sales and earnings figures by deliberately sending retailers along its distribution channel more products than they are able to sell to the public. Channel stuffing typically would take place just before quarter-end or year-end so that management, fearful of bad consequences to their compensation, can make their numbers.

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