Financial Asset


DEFINITION of 'Financial Asset'

An asset that derives value because of a contractual claim. Stocks, bonds, bank deposits, and the like are all examples of financial assets.


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BREAKING DOWN 'Financial Asset'

Unlike land and property--which are tangible, physical assets--financial assets do not necessarily have physical worth.

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  2. Intangible Asset

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  4. Tangible Asset

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  5. Nonfinancial Asset

    An asset with a physical value such as real estate, equipment, ...
  6. Asset

    1. A resource with economic value that an individual, corporation ...
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  1. Are stocks real assets?

    Stocks are financial assets, not real assets. Financial assets are paper assets that can be easily converted to cash. Real ... Read Full Answer >>
  2. Why have mutual funds become so popular?

    Mutual funds have become an incredibly popular option for a wide variety of investors. This is primarily due to the automatic ... Read Full Answer >>
  3. Who do hedge funds lend money to?

    Many traditional lenders and banks are failing to provide loans. In their absence, hedge funds have begun to fill the gap. ... Read Full Answer >>
  4. Do mutual funds pay dividends?

    Depending on the specific assets in its portfolio, a mutual fund may generate income for shareholders in the form of capital ... Read Full Answer >>
  5. How can companies use the cash flow statement to mislead investors?

    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>
  6. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>

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    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
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    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
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