<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->

# Active and Productive Stock

## Definition

Capital that is currently engaged in production or distribution of goods and services, as opposed to dead stock that is idle. This includes materials, tools, provisions, and labour that are actively contributing to economic output.

## Source Chapter

Book II, Chapter 2

## Context

Smith contrasts active and productive stock with dead stock to show how banking operations can increase the proportion of capital that is productive. He argues that converting dead stock to active stock increases a society's wealth.

## Economic Domain

Accumulation

---
