# Ordinary Profits of Stock ## Definition The normal rate of return that capital can expect to earn in a particular trade or industry under competitive market conditions, serving as a benchmark for evaluating investment opportunities. ## Source Chapter Book IV, Chapter 5 ## Context Smith uses ordinary profits as a standard for determining whether bounties are necessary, arguing that trades earning ordinary profits don't require subsidies, while those earning below this rate may indicate fundamental unprofitability. ## Economic Domain Distribution ---