Stockpiling financial definition of stockpiling
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stockpiling the holding of levels of STOCK which are greater than would be normally required by a person, firm or government agency. Stockpiling usually occurs at times of an actual or expected shortage of a product or in anticipation of a price rise.
stockpiling the act of accumulating STOCK over and above normal requirements. National and international trade is dependent upon complex and interrelated supply lines from the raw material to the finished good. If at one point along the supply chain a shortage (or bottleneck) can be perceived in advance by firms beyond that point, then those firms will attempt to purchase much greater stocks than their immediate needs warrant. Stockpiling occurs in many areas of economic life, from a government stockpiling food or weapons to an individual consumer amassing quantities of food in anticipation of a price rise. See also BUFFER STOCK.