Accounting



What is stock?

In accounting there are two common uses of the term stock. One meaning of stock refers to the goods on hand which is to be sold to customers. In that situation, stock means inventory.

The term stock is also used to mean the ownership shares of a corporation. For example, an owner of a corporation will have a stock certificate which provides evidence of his or her ownership of a corporation’s common stock or preferred stock. The owner of the corporation’s common or preferred stock is known as a stockholder.

Learn more about Inventory and Stockholders’ Equity.

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About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.




Comments

3 Responses to “What is stock?”

  1. olga on July 17th, 2009 8:23 am

    what is the entries for inventory -

  2. Soumalya on July 27th, 2009 11:34 pm

    you are doing a great job sir plz keep it up if u can provide some more free contents it would help a lot

  3. Ezeh Chika Angela on May 13th, 2010 4:47 am

    What is Jobbers,
    What is Company Reistraters,
    What is Share underwritters,
    Explain how shares are bought and sold in the primary market.

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