Two factors come into play: First, good quality applicators do a better job of applying paint, and more uniformly, than poor applicators. As a result, they achieve better hide, or coverage. Second, painting technique is a factor that could contribute to overspreading the product.
Liquidation and Free Riding. A liquidation violation occurs when the client sells a security to satisfy a cash obligation for the purchase of a different security after trade date. This is a violation because the sale of the second security will not be settled by the time the first purchase settles.
Other causes of shrinkage include: 1  Administrative errors such as shipping errors, warehouse discrepancies, and misplaced goods. 2  Cashier or price-check errors in the customer's favour. 3  Damage in transit or in the store. 4  Paperwork errors. 5  Perishable goods not sold within their shelf life. 6  Vendor fraud.