Incapable of being perceived by the senses; incorporeal.
intangible in U.S. law
(Noun) Anything intangible.
• Incorporeal property that is saleable though not material, such as bank deposits, stocks, bonds, and promissory notes.
Key takeaways
- Intangible refers to things that cannot be touched or seen.
- Examples include stocks, bonds, and bank deposits.
- Intangible assets can have significant value in business.
In plain English
Intangible means something that you can't physically touch or see. In legal terms, it often refers to assets like stocks, bonds, and bank deposits, which have value but are not physical objects. These assets can be owned, sold, or traded, even though they are not material items.
The practical impact of intangible
Understanding intangible assets is crucial because they can represent a significant portion of a company's value. Businesses often rely on these non-physical assets for investments, financing, and growth. Legal recognition of intangible assets affects taxation, ownership rights, and how businesses operate in the marketplace.
intangible — procedural details
Intangible assets are recognized in financial statements and can be bought or sold like tangible assets. They are governed by various laws and regulations, including property law and securities regulations. For example, stocks are regulated under the Securities Act of 1933, which ensures transparency and protects investors. When a company issues shares, it creates an intangible asset that can be traded on stock exchanges.
Examples
Scenario: Maria owns shares in a tech company worth $10,000.
Outcome: Maria can sell her shares, realizing the value of her intangible asset.
Scenario: James has a bank account with $5,000 in deposits.
Outcome: James can withdraw or transfer the funds, accessing his intangible asset.
Frequently asked questions
What are examples of intangible assets?
Examples include stocks, bonds, patents, trademarks, and copyrights.
Why are intangible assets important?
Intangible assets can significantly impact a company's value and market position.
How are intangible assets valued?
Intangible assets are valued based on their potential to generate future economic benefits.