In layman’s terms, stock and inventory are used interchangeably but for accounting purposes these two things are different.

Using stock and inventory interchangeable is technically wrong also and it gives misinformation about the financial health of the company, one should be careful before using a term. Stock can also have raw material if the company sells raw material to customers. Stock is a finished product ready to sell into a marketplace. Inventory is generally found in manufacturing companies, service-based companies don’t have to carry inventory. In other words, the inventory includes finished product ready to sell, work in progress goods which are not fully converted, and raw material which is required to create the product. Here is a list of our partners.Inventory is a raw material used for making the product, work in progress goods, and finished product. Our partners cannot pay us to guarantee favorable reviews of their products or services. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. So how do we make money? Our partners compensate us. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward - and free. We believe everyone should be able to make financial decisions with confidence. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.

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