Leasing—A New Concept Of Ownership
The lease represents a departure from the traditional concept of asset ownership as it involves only its use for a specified time. There is evidence that this use-value concept is gaining acceptance in other areas of the economy as well. This historical piece offers some great insight in the beginnings of this practice, much of which is still relevant today.
The stock market may well have given a dramatic demonstration of its prophetic qualities when it abandoned the asset-value theory of establishing value and adopted the price-time-earnings multiple. The switch to valuing a company by its earnings power rather than by its assets is a good example of the use-value concept in action.
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