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July 10, 2009

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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Comments

2 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

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