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Accumulation of Stock

Definition

The process by which wealth is gathered and concentrated in the hands of particular persons, enabling them to employ others and undertake commercial ventures. This accumulation marks the transition from primitive to advanced economic society.

Source Chapter

Book I, Chapter 6

Context

Discussed as the condition that enables the emergence of profits as a component of price. Smith explains how accumulated stock allows individuals to employ labour, supply materials, and seek profit from the sale of manufactured goods.

Economic Domain

Accumulation

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