Skating is good exercise. (noun)
Rolling stones gather no moss. (adjective)
Participles are part verb, part noun or adjective
From A New English Grammar for Schools, by Thomas Harvey:
I. Participles have verb attributes.
a. The verb attribute of a participle shows continuance or completion of action, being, or state.
b. The verb attribute is relative to the time denoted by the principal verb of the sentence in which the participle is found.
Mary is studying her lesson.
“Studying” shows continuance relative to the principal verb “is.”
II. Participles have noun or adjective attributes.
I am fond of reading.
1. “Reading,” in this sentence, is a participial noun, because it is the object of the preposition “of.”
2. As a noun, it may have the modifications of a verb; as,
Describing a past event as present has a fine effect in language.
In this sentence, the participial noun “describing” is modified by “event,” which is an objective element.
3. Participial nouns may also be modified by adverbs; as,
I am fond of running rapidly.
Here, “running,” though it is a participial noun, is modified by “rapidly,” which is an adverbial element.
Twinkling stars lit the night sky.
1. “Twinkling,” in this sentence, is a participial adjective, because it modifies“stars.”
2. A participial adjective may show comparison; as,
My husband is a most loving companion.
III. There are three kinds of participles.
a. Present participle
I am loving my vacation.
1. The present participle denotes the continuance of action, being, or state; as, loving, being loved.
2. The present participle always ends in -ing.
3. The present participle may be used as an adjective or as a noun.
b. Past participle
He died, loved by all.
1. The past participle denotes the completion of action, being, or state.
2. The past participle generally ends in d, ed, t, n, or en.
3. The past participle is frequently used as an adjective, but never as a noun.
4. The past participle is usually, but not always, found in compound forms of the verb:
I have written a letter.You should have known better.That house was built in 1780.
c. Perfect participle
Having written the letter, he mailed it.
1. The perfect participle denotes the completion of action, being, or state, at or before the time represented by the principal verb.
2. The perfect participle is formed by placing having or having been before the present participle or before the past participle.
Having bought the horse, he went home.
The lessons having been completed, the school was dismissed.
3. The perfect participle may be used as a noun.
I am accused of having plotted treason. (part of the object of the preposition “of.”)
He is charged with having been engaged in illegal activities.
(part of the object of the preposition “with.”)
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