Definition of Financial asset:
Money at hand, or easily accessible, in the form of cash deposits, checks, loans, accounts receivable, and marketable securities (bonds, notes, shares).
A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical worth or even a physical form. Rather, their value reflects factors of supply and demand in the marketplace in which they trade, as well as the degree of risk they carry.
Most assets are categorized as either real, financial, or intangible. Real assets are physical assets that draw their value from substances or properties, such as precious metals, land, real estate, and commodities like soybeans, wheat, oil, and iron.
How to use Financial asset in a sentence?
- You need to always have a good record of any financial asset so that you can locate it when you need it.
- Stocks, bonds, cash, CDs, and bank deposits are examples of financial assets.
- When Bob applied for a loan he wanted to claim his car as a financial asset , but the bank officer said he could only claim liquid assets like cash.
- A financial asset's worth may be based on an underlying tangible or real asset, but market supply and demand influence its value as well.
- We had a financial asset and that meant we would be okay in the future and could relax a little bit.
- A financial asset is a liquid asset that represents—and derives value from—a claim of ownership of an entity or contractual rights to future payments from an entity.
Meaning of Financial asset & Financial asset Definition