< It may be argued tl^ this Identltication at the comnioii stock with the Intangible ssaets holds true in theory only, in the sense that this ia the view held by the buaineas men who occupy themBelveB with ■uch matters ; wbiie In point of fact no distinction of this nature betneen common and preferred stock is or can practically be maintained fcfter the stock has once found its way into the market. It might ■eem, in other nords, that when the stock has once passed Che stage of OTgantzatton and gone into the hands of the pitrchasers, each share tepreaenla nothing but an undivided interest in the aggregate capitalixation of the concern, so that the particular il«m of wealth repreBented by a given share or given form of security can no longer be
On the face of the situation such appears to be the case, but there are facts which argue for the view set out above. It is, e.g., well known that whenever circumstances arise which immediately a&ect the value of the good-will of a corporation, it is the quotations of the common stock that Qrst and most decidedly are afiected. If the goodwill of the concern makes a great and rapid gala, e.g. through manceuTTes which put it in a position of monopoly or through changes in the goods market which greatly increase the demand for the concern's product, and the lite, it is the quotation of the common stock that measures and registers the advantage which thereby accrues to the concern, and the market fluctuation of the common stock is likewise the instrument by means of which manipulations are carried through that aSect these intangible assets. At the same time this rule does not bold hard and fast, as is seen in case of a liquidation when the capital of the concern ma; have shrank to such dimensions that the entire capital, including the intangible assets, will no more than satisfy the claims represented by the debentures. Still, in point of practical fact, the (theoretical; preconception of business men that the common stock in some intelligible sense covers the intangible assets is fairly borne out by everyday experience, Uken by and large.
A curious parallel might be traced between the current endeavors of the business community to organize and manage the industrial equipment