What is liquidating stock
There are bound to be a large number of store liquidation sales this year, but you'd be smart to skip them.Circuit City ( CC) recently announced it had hired liquidators to sell off its inventory.In fact, most liquidators will actually raise prices to full retail or a token 10% off because they know the store will be packed with people.That means prices at liquidation sales are often higher than you could have gotten at the store before it went into bankruptcy.You need to take extra care since you won't be able to return it.Fully understand the return policies and any terms of the sale before you buy. There's no knowledgeable help: The goal of liquidators is to sell, not to help you decide which of several similar gadgets would best suit your needs.
While moving the inventory is one goal, it's not the primary goal. Since "liquidation sales" usually last several months -- Circuit City's will last till the end of March -- there is no incentive to slash prices from the outset.You don't need it: If you heard about a liquidation sale where a company is selling some type of gadget and now you find yourself wanting one, you did exactly what the liquidator wanted you to do.If you really wanted the gadget, it would have been on your list, after all.A share buyback program enables a company to buy shares back from its investors.This is usually done by a company to increase the number of shares that it owns.