I'm trying to understand the difference between stock and flow. I've heard these terms in various contexts, but I'm not quite sure how they differ from each other or how they are related.
A stock is a financial concept that signifies the value of an asset on a specific date or at a particular point in time.
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AriannaMon Dec 23 2024
While a stock provides a snapshot of an asset's worth at a given moment, a Flow offers insights into the dynamics of economic transactions.
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GangnamGlitzGlamourGloryDaysMon Dec 23 2024
It represents the ownership of a portion of a company's equity, reflecting the shareholder's claim on the company's assets and earnings.
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NicoloMon Dec 23 2024
In contrast, a Flow relates to the economic activity that takes place over a defined accounting period.
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GyeongjuGraceMon Dec 23 2024
This includes all transactions involving sales or purchases, incomes or expenditures, which collectively contribute to the economic health of an entity.