economy

definition of stock

The English word stock is commonly used in our language and refers to the set of stocks that are part of a warehouse. In fact, it is common to talk about warehouse stock. It is a set of goods normally destined for sale and which are temporarily kept in a specially enabled enclosure.

From the accounting perspective, computer programs are currently used in which the point of sale is related to the set of stocks in the stock, something that facilitates merchandise control, organizational logistics and, in short, business profitability. . Keep in mind that there are a number of terms associated with the word stock. Thus, the optimal stock refers to the ideal quantity to be stored. Likewise, the concepts of minimum or maximum stock, dead stock, security, speculative, available, etc. are used for accounting purposes. Each of them has its own significance. For example, dead stock refers to items that are no longer useful because they are obsolete and should be replaced by others.

Stock options

The concept of stock does not apply exclusively to the control of some products, but there are other uses of the term. In the sphere of finance and the world of the stock market, some large companies incentivize their workers by facilitating the acquisition of shares, which in specialized terminology are known as stock options. The mechanics of stock options consist in issuing the sale of shares in a company but intended for its own workers and under advantageous conditions (it is a business strategy with advantages for the entity itself and also for its employees and managers).

Stock market

Following the stock market terminology, the concept of stock market is equivalent to the stock market, the place where buyers and sellers of shares carry out their transactions through brokers, who act as intermediaries. Interestingly, to mention the figure of the broker, the term stockbroker can also be used. Sometimes the concept of stock market is used as a synonym for stock exchange.

Estocaje, a word that doesn't exist

The influence of English is an evident phenomenon in our language. The term stock is used normally and is considered correct. However, it is not correct to use the word stock, since there are others that are more appropriate in Spanish (storage or inventory). In this sense, it must be remembered that the word stock is included in the DRAE, but the same does not happen with the term stock.

Photos: iStock - fatihhoca / uschools

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