THE ELEMENTS OF INVESTMENT INCOME.

The article discusses different aspects of investment income. In analyzing the subject, the author looks at the relevance of the capital market, which is described as the mechanism that adjusts the capital supply to the demands of its users. He then relates the adjustment of the supply and demand of capital in the world market to rate of return on the savings available. Furthermore, the premium on an investment is discussed as the second aspect of investment income. Lastly, the author describes a business profit for investors that have the ability to choose investments where the premium is larger than the risk involved.