STOCK AND

FLOW Presented by:

(APPLICATION/USE, MIKE C. ABAYA

IMPORTANCE AND
EFFECT TO ECONOMY)
 STOCKS
• the total quantity of goods, assets, liabilities or
funds which is stored or is ready for distribution
or sale or simply held by a firm on a given date.
 FLOWS
• describe the changes in the Stock over a
period of time

1. Inflows - flows that add to stocks

2. Outflows - flows that deplete the stocks

Net inflows - The difference between inflows and

outflows
The figure illustrates the relationship between
stocks and flows. If the inflow is greater than
the outflow or net inflow is positive, the stock
will be rising; if the inflow is less than the
outflow, net inflow is negative, and the stock
will be falling.
Let’s say you deposit $1000 dollars every month to your
bank account and withdraw $200 dollars from your bank
account. So the money added to and withdrawn from the
account is nothing but the inflow and outflow of funds.
But the amount available in your bank account will be the
stock of funds.
 INFLOW

OUTFLOW
STOCK