---
entity_slug: common_returns_of_stock
entity_type: Element
vsm_system: S2
type_rationale: "Common returns of stock represents a measurable economic quantity\u2014\
  the typical profits earned by capital\u2014that exists as a persistent benchmark\
  \ against which actual returns can be compared."
vsm_rationale: Common returns function as a coordination mechanism by providing the
  baseline signal that allows market participants to assess whether different employments
  of capital offer adequate compensation relative to their risks.
classified_at: '2026-02-23T10:56:02.091595'
---

# Classification: Common Returns Of Stock

## Entity Type

Element

## VSM System

S2

## Type Rationale

Common returns of stock represents a measurable economic quantity—the typical profits earned by capital—that exists as a persistent benchmark against which actual returns can be compared.

## VSM Rationale

Common returns function as a coordination mechanism by providing the baseline signal that allows market participants to assess whether different employments of capital offer adequate compensation relative to their risks.
