27 lines
690 B
Markdown
27 lines
690 B
Markdown
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-05 -->
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# Ordinary Profits of Stock
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## Definition
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The normal rate of return that capital can expect to earn in a particular
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trade or industry under competitive market conditions, serving as a benchmark
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for evaluating investment opportunities.
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## Source Chapter
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Book IV, Chapter 5
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## Context
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Smith uses ordinary profits as a standard for determining whether bounties
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are necessary, arguing that trades earning ordinary profits don't require
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subsidies, while those earning below this rate may indicate fundamental
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unprofitability.
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## Economic Domain
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Distribution
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---
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