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
