Shifting Stock of Merchandise Law and Legal Definition

Shifting stock of merchandise means the merchandise inventory that is subject to change in the course of trade as a result of the purchases and sales made therein.

In In re Noethen, 195 F. 573 (D.N.Y. 1912), the court observed that “A mortgage on a shifting stock of merchandise, obviously intended for daily sale, and the proceeds whereof go to the mortgagor, is void as against creditors and as against a receiver in bankruptcy, even though under some other circumstances equity might enforce it as between the parties themselves.”