What is the Difference Between Stock and Reserves?

By BYJU'S Exam Prep

Updated on: November 14th, 2023

The difference between Stock and Reserves is that Stock are materials that possess potential to satisfy human needs, whereas Reserves are materials that are not utilized. Stock refers to a material not being used for various reasons, such as a lack of technology and innovation. Reserves are materials that are well recognized in their quantity and capacity and, despite technical availability, are not currently being used and are reserved for future purposes.

Differences between Stock and Reserves

Water is a good example of a stock containing hydrogen and oxygen, two inflammable gases that can be used for various energy sources but are not being utilized due to a lack of technology.

Check out the major Difference Between Stock and Reserves in the table below:

Stock Reserves
Materials/elements that possess potential but can not be accessed. Resources that can be used but are not being accessed due to several future reasons.
We do not have any technology to extract stock resources presently. Despite technological availability, reserve resources are not being extracted.
Water and minerals found in the sea or oceans are a few examples. Forests and reservoirs are some examples.
Common and Preferred Stock are two main types. Capital, statutory, revenue, realized, and unrealized reserves are a few used in financial accounting.

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