Definition of an investment account, 469. — Relationships between capitalized value, depreciation, and income holding at all times under any rate of discount, 470. — Necessary equality between capital invested and value of investment account derived by capitalization, 474.— Definition and derivation of internal rate of interest; its relation to market rate, 475. — Identification under ideal conditions of market value of investment account with capitalized value, 477.— Problem of optimum determination of variables; maximization of internal rate vs. maximization of present value of assets, 478.— Demonstration that all principles remain invariant under a varying interest rate, 483.— Mathematical appendix I, 488, — Mathematical appendix II, 492.
I. Comments on the four discussions in the previous issue of points in the General Theory, 209. — II. Certain definite points on which the writer diverges from previous theories, 212. — The theory of interest restated, 215. — Uncertainties and fluctuations of investment, 217. — III. Demand and Supply for output as a whole, 219. — The output of capital goods and of consumption, 221.
The article presents a study that is an attempt to describe and evaluate requirements of some leading securities exchanges as of 1933. The need of stockholders for corporate reports has tended to coincide with the increasing importance of corporations as a type of business organization. But many factors other than wishes of stockholders have influenced the development of corporate reporting and accounting policies. In the early period of corporate regulation in the U.S., the legislation restricting operations of railroads possibly exerted some influence; some of the leading financial journals carried on active campaigns for better reporting practices. Stock exchanges, the factor with which the paper is principally interested, began to require accounting statements as a part of their expanding listing requirements. Prior to 1938, legislation played, but a minor part in the development of reporting and accounting policies of American industrial corporations. These legislative devices represent new approaches to the problem of securing adequate presentation of corporate operations.