Stock

Stock is a term with several related meanings across business, finance, cooking, and culture.

In business and commerce, stock refers to the goods and materials a company holds for sale, production, or maintenance of operations. This includes raw materials, work-in-progress, and finished goods. Effective stock management aims to balance supply and demand, minimize carrying costs, and prevent stockouts. Management approaches include periodic and perpetual inventory systems, order quantities, and reordering strategies.

In finance, stock denotes shares of ownership in a corporation. Stockholders may receive dividends and often have voting rights, depending on the type of share. Stocks are bought and sold on stock exchanges, with prices driven by expectations of future earnings, risk, and broader market conditions. Major stock categories are common stock, which typically carries voting rights and residual claims on assets, and preferred stock, which generally provides fixed dividends and higher claim on assets but limited or no voting rights. Market performance is tracked by measures such as market capitalization and stock indices, and prices can be volatile in response to company results, economic data, and investor sentiment.

In cooking, stock is a flavorful liquid produced by simmering bones, meat, or vegetables in water with seasonings. It serves as a base for soups, sauces, and braises. Stock differs from broth in that it is usually simmered longer to extract gelatin from collagen, yielding a richer body and mouthfeel. Common varieties include chicken stock, beef stock, and vegetable stock.

In literature and media, a stock character is a familiar, recurring archetype used to convey ideas quickly, such as the wise old mentor or the scheming trickster. While efficient for storytelling, stock characters can be perceived as lacking originality if overused.