INVENTORY

For companies: Raw materials, items available for sale or in the process of being made ready for sale. They can be individually valued by several different means, including cost or current market value , and collectively by (First-in-first-out) F.I.F.O. , (Last-in-first-out) L.I.F.O. or other techniques. The lower value of alternatives is usually used to preclude overstating earnings and assets . For security firms: securities bought and held by a broker or dealer for resale.