Stock In Trade Law and Legal Definition
Stock in trade refers to any merchandise or equipment kept on hand and used in carrying on a business. It includes the collection of goods, inventories and merchandise, maintained by a business entity for the purpose of using them for processing, making salable goods or for selling to the customers with an intention to make profit from such deals.
The following is an example of a case law on stock in trade;
Stock in trade means the visible and tangible property with which the trade or business of the owner is carried on, and to which it relates. [New England Mut. Life Ins. Co. v. Boston, 321 Mass. 683, 687 (Mass. 1947)].
