---
entity_slug: ordinary_profits_of_stock
evaluator: null
evaluated_at: '2026-02-23T06:03:19.353529'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes ordinary profits as a competitive
    benchmark rate of return, avoiding circularity and providing specific criteria
    (normal rate under competitive conditions). It could be slightly more precise
    about how this rate is determined or measured.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is well-grounded in Smith's actual text, particularly in
    his discussions of profit rates across different trades and his analysis of when
    government intervention might be justified. The connection to bounty policy evaluation
    directly reflects Smith's reasoning in Book IV.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Distribution" is the correct domain placement, as ordinary profits
    relate directly to how returns to capital are allocated across different economic
    activities. This fits squarely within classical concerns about factor income distribution.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, potentially mapping to S4 (intelligence)
    as a market signal for resource allocation decisions, or S3 (regulation) as an
    internal performance standard. However, it's somewhat abstract and doesn't clearly
    belong to any single VSM system.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The concept provides genuine explanatory power by establishing the mechanism
    through which competitive markets generate profit rate benchmarks that guide investment
    decisions and policy evaluation. It illuminates how Smith conceptualized normal
    market functioning versus market failures requiring intervention.
---

# Evaluation: Ordinary Profits Of Stock

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes ordinary profits as a competitive benchmark rate of return, avoiding circularity and providing specific criteria (normal rate under competitive conditions). It could be slightly more precise about how this rate is determined or measured.

## source_grounding — 5.0 / 5.0

This concept is well-grounded in Smith's actual text, particularly in his discussions of profit rates across different trades and his analysis of when government intervention might be justified. The connection to bounty policy evaluation directly reflects Smith's reasoning in Book IV.

## domain_placement — 5.0 / 5.0

"Distribution" is the correct domain placement, as ordinary profits relate directly to how returns to capital are allocated across different economic activities. This fits squarely within classical concerns about factor income distribution.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, potentially mapping to S4 (intelligence) as a market signal for resource allocation decisions, or S3 (regulation) as an internal performance standard. However, it's somewhat abstract and doesn't clearly belong to any single VSM system.

## explanatory_value — 4.0 / 5.0

The concept provides genuine explanatory power by establishing the mechanism through which competitive markets generate profit rate benchmarks that guide investment decisions and policy evaluation. It illuminates how Smith conceptualized normal market functioning versus market failures requiring intervention.
