Product Recall

Filed Under » , ,
Dictionary Says

Definition of 'Product Recall'

The process of retrieving defective goods from consumers and providing those consumers with compensation. Recalls often occur as a result of safety concerns over a manufacturing defect in a product that may harm its user.
Investopedia Says

Investopedia explains 'Product Recall'

While the process behind a recall can vary depending on local laws, there are some general steps that occur. For example, if a pet food manufacturer releases a batch of product that may poison animals, the company will publicly announce the dangers of the food and request that its customers return the product to the firm, or simply discard it. Customers will usually be given a full refund or replacement. A public relations campaign is often created to handle the publicity surrounding the event.

Recalls may negatively affect a company's stock. Concerns grow over the company's capabilities when a dangerous product is released, and customers may turn away from purchasing its goods, leading to a decrease in sales.

Articles Of Interest

  1.

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.

  2. Impairment Charges: The Good, The Bad And The Ugly

    Impairment charge is a term for writing off worthless goodwill, but you need to know what its potential impact is on EPS.

  3. Consumer Confidence: A Killer Statistic

    It's the key to any market economy, so investors need to learn the measures and how to analyze them.

  4. Analyzing Auto Stocks

    Find out what to consider before taking a ride with stocks from this industry.

  5. Weighted Average Cost Of Capital (WACC)

    Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality

  6. Femsa Is A Delicate Balance Between Growth Opportunities And Valuation

    Femsa's stock got a little too popular, but the long-term prospects are very good.

  7. Coty Readies IPO

    Fragrance maker Coty filed a registration statement amendment May 28 that sees it raising as much as $1.2 billion from its IPO. Coty tried to buy Avon for $10.7 billion in 2012 but was unsuccessful. ...

  8. 5 Best-Selling Cars Ever

    Here's a list of the best-selling cars of all time.

  9. Earnings Guidance: Can It Accurately Predict The Future?

    Explore the controversies surrounding companies commenting on their forward-looking expectations.

  10. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=5356f9b342a27019e3bfa694b6621616