There are many differences between stock and trade. But before we talk about the difference between them let’s see what are they?
Stock is the goods that are being sold in a shop. We call the stock inventory.
Trade is the business of selling and buying. It’s a business of buying and selling the products.
In short, the difference between stock and trade is that trade deals with the products, and stocks deal with the money. But there is still a difference between trading and selling.
Let’s see the difference:
The purpose of trading is to make a profit and the main aim of trading is to earn money.
The purpose of selling is to earn profit and the main aim of selling is to earn money.
Both of them are different.
But if you are dealing with stocks, you need to sell your stocks. It is the main purpose of selling. But if you are trading, you are dealing with a product and you need to buy the product.
So, these are the major differences between stock and trade. Now, you can easily understand what is the difference between stock and trade.