2. What Does Financial Asset Mean?
• An asset that derives value because of a
contractual claim is called financial asset.
• Investopedia Says:
Unlike land and property--which are tangible,
physical assets--financial assets do not
necessarily have physical worth.
or
Financial assets are non-physical assets those can
be readily converted into cash like Bank balance,
Shares, short-term investments, Treasury bills,
commercial papers, bill receivables etc.
3. Or
• Claims on real assets such as stocks and bonds
etc are called financial assets.
• Or
• A financial asset is not tangible. Instead, its
existence is "represented by evidence of its
existence such as a paper certificate, like money,
a savings passbook, a stock certificate, or a bond.
The paper in money has no intrinsic value. Its
value is derived by virtue of what it represents.
4. • Pieces of paper evidencing a claim on some
issuer are called financial assets.
• Or
• A paper (or electronic) claim on some issuer is
called financial assets.
5. What Does Real Asset Mean?
• Real Assets are assets that are used to produce a good
and/or service. It is also usually something you can touch,
land, equipment, supplies, etc.
• Or
• A real asset is a tangible asset like gold or real estate. You
can hold it or place your hand on it. It has intrinsic value in
and of itself.
• Or
• Assets used to produce goods and services are called real
assets.
• Examples: factories, land, building, machinery etc.
6. What Does Marketable securities Mean?
• Financial assets that are easily traded in organized market
are called marketable securities.
• Or
• Very liquid securities that can be converted into cash
quickly at a reasonable price are called marketable
securities.
• or
• Readily tradable equity or debt security with quoted prices,
are called marketable securities.
• Examples of marketable securities include commercial
paper, banker's acceptances, Treasury bills and other
money market instruments.
• It is a near-cash asset and is classified under current assets.