# profit of stock

**Definition**  
Profit of stock is the return earned by the owner of capital stock after covering the costs of materials, wages, and other inputs. It reflects the surplus generated by the productive use of accumulated capital and is proportional to the extent of the stock employed.

**Source Chapter**  
*The Wealth of Nations*, Book 1, Chapter 6.

**Context**  
Smith distinguishes profit of stock from wages of labour, stating that it is “regulated altogether by the value of the stock employed.” He provides numerical examples showing how profit varies with the amount of capital invested.

**Economic Domain**  
Distribution

**Smith’s Original Wording**  
> “The profits of stock … are regulated altogether by the value of the stock employed, and are greater or smaller in proportion to the extent of this stock.”

**Modern Interpretation**  
Profit of stock aligns with the concept of capital income or return on investment (ROI). It is the residual income after paying for labor and material costs, central to the theory of distribution and the measurement of economic growth.
