The common stock, typically, represents Intangible asseta and is accounted for by valuable trade-marks, patents, processes, franchises, etc. Whatever material properties, tangible assets, are in hand or to be acquired are covered by preferred stock or other debentures. The various forms of debentures account for the material equipment and the working capital (the latter item corresponding roughly to the economists' categories of raw materials, wages fund, and the like). Of these debentures the preferred stock is the most characteristic modem development. It is, de jure, counted as a constituent of the concern's capital and the principal is not repayable ; in this (l^g^') respect it \b not an evidence of debt or a credit instrument.' But it haa little voice in the direction of the concern's business policy.' In practice the management rests chiefly on the holdings of common stock. This is due in part to the fact that the preferred bears a stated rate of dividends and is therefore taken up by scattered purchasers as an investment security to a greater extent than the common. In
!> On tbe books of the corporalion it is, of coune, curled aa ao itara of lUbillt;, u is the common stock ; but that \a a technical BXpedient of acDountancy, and does not touch tbe subetastial question.
■See testimony of TBrioua wllnesseeon "CapltaUzUlon" befon (he lodualiial Commiaalon, toIo. L, IX., Xm.