Alternative Asset

Dictionary Says

Definition of 'Alternative Asset'

Any non-traditional asset with potential economic value that would not be found in a standard investment portfolio. Due to the unconventional nature of alternative assets, valuation of some of these assets can be difficult.
Investopedia Says

Investopedia explains 'Alternative Asset'

For most people, examples of alternative assets would include art and antiques, precious metals, fine wines, rare stamps and coins, and sports cards and other collectibles. However, there are also more traditional alternative assets including hedge funds, venture capital-related projects and infrastructure. In either case, alternative assets tend to be less liquid than traditional investments. Thus, investors who favor alternative assets may have to consider a longer investment horizon. 

Related Definitions

  • Asset

    1. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. 2. A balance sheet item ...
    Read More »
  • Nonfinancial Asset

    An asset with a physical value such as real estate, equipment, machinery, gold or oil. For example, gold is considered a nonfinancial asset because it has inherent value based on its use ...
    Read More »
  • Tangible Asset

    Assets that have a physical form. Tangible assets include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory. The opposite of a tangible ...
    Read More »
    • Intangible Asset

      An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all ...
      Read More »
    • Hedge Fund

      An aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international ...
      Read More »
    • Asset Valuation

      The process of determining the current worth of a portfolio, company, investment, or balance sheet item.
      Read More »
    • Shadow Pricing

      1. The actual market value of one share of a money market fund. In this case, shadow pricing refers to securities that are accounted for based on amortized costs rather than a market ...
      Read More »
    • Liquidity

      1. The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. ...
      Read More »
    • Long-Term Investments

      An account on the asset side of a company's balance sheet that represents the investments that a company intends to hold for more than a year. They may include stocks, bonds, real estate ...
      Read More »
    • Precious Metals

      A classification of metals that are considered to be rare and/or have a high economic value. The higher relative values of these metals are driven by various factors including their ...
      Read More »

Articles Of Interest

Partner Links