What is Stock?
Stock describes the total amount of a specific commodity that is in hand with the company at any given time. It consists of the number of goods supplied by a firm for selling as well as the number of goods stored with the firm, and withdrawn or hoarded by it from the market to sell them in future. All of the stock produced by a firm is not offered in the market for sale, a part of the produced goods is stored in the storage/warehouses and is released only when the prices are favourable for the firm. Therefore, it is essential for the firms to maintain proper warehousing facilities to keep the stock in proper condition.
Difference between Stock and Supply
The words stock and supply of the commodity are frequently used interchangeably. However, the two concepts are different in economics.