The value of a firm's securities measures the value of the firm's productive assets.
If the assets include only capital goods and not a permanent monopoly franchise,
the value of the securities measures the value of the capital. Finally, if the price
of the capital can be measured or inferred, the quantity of capital is the value
divided by the price. A standard model of adjustment costs enables the inference
of the price of installed capital. Data from U.S. corporations over the past 50 years
imply that corporations have formed large amounts of intangible capital, especially
in the past decade.