ABSTRACT

Investment is a pecuniary transaction, and its aim is pecuniary gain,–gain in terms of value and ownership. Invested wealth is capital, a pecuniary magnitude, measured in terms of value and determined in respect of its magnitude by a valuation which proceeds on an appraisement of the gain expected from the ownership of this invested wealth. "Intangible assets" are immaterial items of wealth, immaterial facts owned, valued, and capitalised on an appraisement of the gain to be derived from their possession. The captain of industry, the pecuniary magnate, is normally in receipt of income in excess of the ordinary rate per cent on investment; but apart from his large holdings he is not in a position to get these large gains. In a manner analogous to the old-fashioned capitalist-employer's engrossing of the industrial community's technological efficiency does the modern pecuniary magnate engross the business community's capitalistic efficiency.