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Stuffing |
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A deceptive business practice used by companies to artificially inflate
sales and earnings figures for the company. By "stuffing the
distribution channel" with products it inflates accounts receivable,
but this stuffing always catches up with the company because it can
not maintain sales at the rate it is stuffing.
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In other words stuffing the channel may work for a couple quarters
but these high sales from past quarters are made at the expense of
poor sales in another quarter.
It is
usually done to fraudulently raise the value of the stock, channel
stuffing is highly illegal.
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