Stock and Flow

Topic Covered in this page

Meaning of concept Stock:

A stock is the quanity which is measured at a particular point of time e.g Bank balance as on 31st March is Rs 45000, 2015, number of machinery in a factory at given date etc. It influences the flow, Greater a stock of money balance in an account, greater will be the flow during a particular month. It is a static concept and doesn’t have an element of time attached to it.




Meaning of concept Flow:

Flow is the concept which is measured over an interval of period of time. Eg bank balance for a particular month or a particular year, number of births during a particular year. National Income is also a flow concept as it measures income of a country over given period time. They have an element of time attached to it.

Difference between Stock and Flow

Meaning

Stock – A stock is the quanity which is measured at a particular point of time
Flow – Flow is the concept which is measured over an interval of period of time

Time Element

Stock – They do not have an element of time attached to it.
Flow – They have an element of time attached to it eg 1 month, 3 months, 1 year etc




Concept

Stock – It is a static concept.
Flow – It is a dynamic concept.

Example

Stock – Capital, Bank deposits etc
Flow – Consumption, National income, Investment etc

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