What is an intangible benefit?

Intangible benefits are any types of advantages or benefits that accrue from an investment but are not of a nature that can be measured in terms of monetary or tactile gains. Benefits of this type are generally considered additional or additional benefits that add to the overall value of making the investment. As an intangible benefit is something subjective in nature, the scope and scope of these types of benefits will vary from individual to individual.

One of the easiest ways to understand the concept of an intangible benefit is to consider the investment an individual makes in accepting a specific job. The position will provide a number of tangible benefits that can be easily touched and felt, such as a salary, the ability to participate in a group insurance plan, and accrued vacation days. At the same time, the employee can also enjoy intangible benefits that include developing positive relationships with other employees, the opportunity to make use of the person's gifts and talents, and the benefit of being generally happy with the job and work. environment.

Investors may also receive intangible benefits from choosing to buy and sell certain types of securities and options. For example, an environmentally conscious investor can gain many personal or intangible benefits from investing in a solar energy company or a goods producer that uses organic methods to grow the food used in the products. Likewise, an investor who chooses to invest in a municipal bond issue may receive intangible benefits related to the possibility of enjoying walks in the municipal park or using the recreation center that is built with the proceeds from that bond. It can be said that an investment that ultimately saves the investor's time, provides some intangible benefit along with the tangible benefits.

The ability to enjoy an intangible benefit along with any actual monetary rewards associated with a particular investment of work, time or resources helps to increase the overall value to the investor. If an investor buys stock options that value and generate a consistent return, this tangible benefit makes the deal very attractive. When combined with the fact that the company that issues these shares makes the investor also support, or in some way improve, the community they live in, incorporating these intangible benefits makes the business even more attractive.

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