Financial Assets New
•Download as PPTX, PDF•
4 likes•4,294 views
Financial assets are non-physical claims or rights to cash flows or other assets that are represented by a paper or electronic certificate. Unlike tangible real assets like land or equipment, financial assets derive their value from contractual agreements rather than physical attributes. Common types of financial assets include stocks, bonds, bank balances, and investments that can be readily converted into cash. Marketable securities refer to liquid financial assets that are easily traded on organized markets and can be quickly converted to cash at a reasonable price, such as commercial paper, money market instruments, and certain stocks and bonds.
Report
Share
Report
Share
Recommended
Financial services
The document discusses various types of financial services including traditional activities like leasing, hire purchase, bills discounting, and venture capital as well as modern activities like risk management services and capital restructuring advisory. It also covers the objectives, characteristics, and importance of financial services and how they contribute to economic growth and capital formation.
Types of investment
The chapter discusses the key concepts of investments including defining investments, differentiating types of investments, outlining the investment process and participants, describing steps in investing including establishing goals and managing taxes, examining how investing changes over an individual's life cycle and in different economic environments, and understanding popular short-term investment vehicles. The goal is for readers to understand different aspects of the investment landscape and how to approach investing.
bond and its types
A bond is a (written and signed promise) debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate (Coupon Rate).
Capital Market
Presentation on "Capital Market"
1.definition and characteristics
2.function and players
3.importance/role and types
4.factor and structure
5.reforms and development
Securitization
This document provides an overview of securitization, including:
- Securitization is the process of converting illiquid assets into liquid assets by pooling them and selling securities backed by the pooled assets.
- The key participants are originators, special purpose vehicles, investors, and servicers. Assets like mortgages, credit cards, auto loans can be securitized.
- Benefits include off-balance sheet financing for originators and returns for investors. Risks include collateral, structural, legal, and third party risks.
- India has taken steps to regulate securitization but lacks a comprehensive framework and standardization.
Leasing
This document discusses leasing, which allows one party to use an asset owned by another party. There are two main types of leases: operating/service leases and financial/net leases. Operating leases provide maintenance services while financial leases do not. Leasing offers advantages over ownership like facilitating asset acquisition and improving financial position, but parties must consider tax and ownership implications.
What is Capital Market?
"This presentation covers the fundamentals of the Indian capital markets. It includes a briefing on the various instruments available for fund raising and investing. It will help you understand the basics of shares, debentures, bonds, commodities and other instruments".
Investment Avenues
Mutual funds allow investors to pool their money together for investment in stocks, bonds, and other assets. The document discusses various types of mutual funds like equity funds, debt funds, and hybrid funds. It explains how Systematic Investment Plans (SIPs) enable regular small investments and benefit from rupee cost averaging. Equity Linked Savings Schemes (ELSS) are highlighted as a tax-efficient investment option that provides tax benefits under Section 80C while also offering potential for capital appreciation over the long run. Well-planned investments through mutual funds and SIPs can help create wealth and meet financial goals.
Recommended
Financial services
The document discusses various types of financial services including traditional activities like leasing, hire purchase, bills discounting, and venture capital as well as modern activities like risk management services and capital restructuring advisory. It also covers the objectives, characteristics, and importance of financial services and how they contribute to economic growth and capital formation.
Types of investment
The chapter discusses the key concepts of investments including defining investments, differentiating types of investments, outlining the investment process and participants, describing steps in investing including establishing goals and managing taxes, examining how investing changes over an individual's life cycle and in different economic environments, and understanding popular short-term investment vehicles. The goal is for readers to understand different aspects of the investment landscape and how to approach investing.
bond and its types
A bond is a (written and signed promise) debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate (Coupon Rate).
Capital Market
Presentation on "Capital Market"
1.definition and characteristics
2.function and players
3.importance/role and types
4.factor and structure
5.reforms and development
Securitization
This document provides an overview of securitization, including:
- Securitization is the process of converting illiquid assets into liquid assets by pooling them and selling securities backed by the pooled assets.
- The key participants are originators, special purpose vehicles, investors, and servicers. Assets like mortgages, credit cards, auto loans can be securitized.
- Benefits include off-balance sheet financing for originators and returns for investors. Risks include collateral, structural, legal, and third party risks.
- India has taken steps to regulate securitization but lacks a comprehensive framework and standardization.
Leasing
This document discusses leasing, which allows one party to use an asset owned by another party. There are two main types of leases: operating/service leases and financial/net leases. Operating leases provide maintenance services while financial leases do not. Leasing offers advantages over ownership like facilitating asset acquisition and improving financial position, but parties must consider tax and ownership implications.
What is Capital Market?
"This presentation covers the fundamentals of the Indian capital markets. It includes a briefing on the various instruments available for fund raising and investing. It will help you understand the basics of shares, debentures, bonds, commodities and other instruments".
Investment Avenues
Mutual funds allow investors to pool their money together for investment in stocks, bonds, and other assets. The document discusses various types of mutual funds like equity funds, debt funds, and hybrid funds. It explains how Systematic Investment Plans (SIPs) enable regular small investments and benefit from rupee cost averaging. Equity Linked Savings Schemes (ELSS) are highlighted as a tax-efficient investment option that provides tax benefits under Section 80C while also offering potential for capital appreciation over the long run. Well-planned investments through mutual funds and SIPs can help create wealth and meet financial goals.
Leasing
The document discusses leasing as an alternative to owning assets. It defines key terms like lessor, lessee, operating lease and financial lease. An operating lease is short-term while a financial lease allows the lessee to purchase the asset at the end. Leasing provides benefits to both lessors and lessees like saving capital upfront, flexibility, tax benefits, and improved cash flows. Lease evaluation involves determining costs and returns for both parties.
Project finance
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights and interests held as secondary security or collateral. Project finance is especially attractive to the private sector because companies can fund major projects off balance sheet.
Difference Between Debt And Equity
Debt refers to funds that a company owes to another entity that must be repaid within a specific term. Equity refers to funds raised by issuing shares to the public that can remain invested in the company long-term as ownership. Key differences are that debt is borrowed while equity is owned, debt carries obligation to repay while equity represents ownership, and debt has fixed regular interest payments while equity dividends are variable and irregular. Maintaining a balanced ratio between debt and equity, typically with equity twice that of debt, helps companies cover potential losses.
Types of investment
The document discusses different types of investments, including traditional and alternative investments. Traditional investments include bonds, stocks, small saving schemes, mutual funds, fixed deposits, and real estate. Bonds are loans to entities that pay interest. Stocks represent ownership in companies. Small saving schemes are meant for small amounts. Mutual funds invest in different securities. Fixed deposits earn interest. Real estate can appreciate. Alternative investments include hedge funds, private equity, venture capital, structured products, and collectibles. These have complex structures and are less liquid than traditional investments.
Chapter 09_The Money Markets
The document discusses money markets and the various securities traded within them. Money markets provide short-term funding for participants and a place for investors to store excess cash. Major securities discussed include Treasury bills, certificates of deposit, commercial paper, and repurchase agreements. These instruments vary in issuers, maturity length, and liquidity. Money markets help corporations and governments manage mismatches between cash inflows and outflows.
Asset liability management
This document discusses asset liability management (ALM) in banks. It defines ALM as a mechanism to address risks from mismatches between bank assets and liabilities due to liquidity or interest rate changes. The ALM framework focuses on profitability and viability. It aims to match asset and liability maturities across time horizons. The objectives of ALM include managing liquidity risk, interest rate risk, and currency risks to stabilize profits and the bank's financial position. Tools used in ALM include information systems, organizational structure, and processes to identify, measure and manage various risks.
INVESTMENT DECISION
Investment Decision — Capital Budgeting Techniques — Pay Back Method — Accounting Rate Of Return — NPV — IRR — Discounted Pay Back Method — Capital Rationing — Risk Adjusted Techniques Of Capital Budgeting. — Capital Budgeting Practices
Interest rate
The document is a presentation on the Indian financial system covering various topics such as interest rates, types of interest rates set by the Reserve Bank of India, factors affecting market interest rates, government securities, and public deposits. It provides definitions and levels of interest rates according to different theories. It also outlines the structure and policy rates in India including the repo rate, reverse repo rate, cash reserve ratio, and statutory liquidity ratio set by RBI. Finally, it discusses reasons for changes in interest rates and characteristics of business cycles.
Time value of money
time value of money
,
concept of time value of money
,
significance of time value of money
,
present value vs future value
,
solve for the present value
,
simple vs compound interest rate
,
nominal vs effective annual interest rates
,
future value of a lump sum
,
solve for the future value
,
present value of a lump sum
,
types of annuity
,
future value of an annuity
investment
1. The document provides an introduction to investments, discussing key concepts like primary and secondary markets, securities, and the objectives and process of investment.
2. It defines investment as the commitment of money or resources with the goal of earning future benefits. Individuals invest by saving money instead of spending it currently to gain larger consumption later.
3. The main objectives of investment are increasing returns, reducing risk, and providing liquidity, protection against inflation, and safety of capital. The investment process involves formulating a policy, analyzing opportunities, valuing assets, constructing a diversified portfolio, and regularly evaluating performance.
Business risk and financial risk
The document discusses different types of business and financial risk. Business risk includes strategic, financial, operational, and compliance risk. Financial risk considers how business risk correlates with the level of financial risk, which can be low, high, or a balanced combination. The document outlines steps for risk management, including risk identification, assessment, prioritization, and strategies such as avoidance, reduction, transfer, and retention. Various techniques are provided for analyzing and mitigating risk, such as sensitivity analysis and sequential investment decisions.
Classification of risk
This document classifies and defines different types of risk:
1. Systematic risk includes market risk, interest rate risk, and purchasing power risk which stem from overall market forces outside a company's control.
2. Unsystematic risk is specific to an individual company and can result from business risks like poor management or technological changes, or financial risks from using debt.
3. Risk is associated with the variability and uncertainty of investment returns. Expected return considers the probability weighted average returns from all possible outcomes, while risk is measured by the variance or standard deviation of returns. Both risk and expected return must be examined for investment decisions.
hedging strategy
This document discusses various hedging strategies using futures contracts. It defines anticipatory hedging as using futures to lock in future prices for assets that will be bought or sold. Examples are given such as an airline hedging future jet fuel purchases. The document also discusses hedging portfolios using stock index futures to reduce portfolio beta risk. Key formulas are provided for calculating optimal hedge ratios and determining the number of futures contracts needed to hedge a given exposure or change a portfolio's beta.
Portfolio analysis
This document discusses portfolio analysis and security analysis. It defines portfolio analysis as determining the future risk and return of holding various combinations of individual securities. Portfolio analysis involves diversifying investments across different assets, industries, and companies to reduce non-systematic risk. The document contrasts traditional portfolio analysis, which focuses on lowest risk securities, with modern portfolio theory, which emphasizes combining high and low risk securities to maximize returns at a given level of risk. Key aspects of portfolio analysis include calculating expected returns, variance, and the standard deviation and beta of a portfolio to measure risk. Diversification is presented as an important tool to reduce unsystematic risk.
Capital budgeting decisions
This document provides an overview of capital budgeting decisions and investment evaluation methods. It discusses key concepts like net present value (NPV), internal rate of return (IRR), payback period, and accounting rate of return. The document explains how to calculate each method and their respective acceptance rules. It also compares NPV and IRR, noting they may provide conflicting recommendations for mutually exclusive projects. The document is intended to help readers understand important investment evaluation techniques.
Mutual fund ppt
Mutual funds pool money from investors and invest it in stocks, bonds, and other securities. The money earned through investments and any capital appreciation is shared by unit holders proportionate to how many units they own. The document discusses the history of mutual funds in India from 1964 to present. It describes open-ended and closed-ended funds, as well as growth, income, balanced, and money market funds. The advantages of mutual funds include diversification, professional management, convenience, and tax benefits, while the disadvantages include costs and lack of control. Systematic investment plans allow regular investing of small amounts to achieve long-term goals through rupee cost averaging and the power of compounding.
Financial Markets
Financial Markets - Money market-Organized and Unorganized-Sub markets
Capital market- Primary market-IPO-FPO- NFO, Book Building-Right Issue-Private placement- Bonus issue-Buyback
Secondary Market-Stock exchanges- Role and functions of Stock Exchanges- BSE-NSE.
Regulatory authorities and their functions – RBI, SEBI
Portfolio Diversification
This presentation discusses the importance of having a diversified portfolio with a variety of different kinds of investments and tips on creating a diversified portfolio.
Secondary Markets
This presentation explains Secondary Markets which is a part of the subject Financial Management. This presentation is allied to basic concepts.
Hire Purchase
Hire purchase is a transaction where goods are purchased through installment payments, with ownership transferring upon final payment. Some key points:
- The buyer receives immediate possession but not ownership of the goods, paying a down payment (typically 20%) and installments that include interest.
- If installments are missed, the seller can repossess the goods. Ownership fully transfers after the last installment is paid.
- It allows consumers to spread costs over time while purchasing goods. However, it offers less tax benefits than leasing and the buyer assumes more risk if installments are missed.
Financial Assets
This document discusses various topics relating to financial assets, including cash, marketable securities, receivables, and notes receivable. It provides information on how these assets are valued for financial statements, cash management techniques, accounting for uncollectible accounts receivable, and calculating interest revenue for notes receivable. Worked examples are provided to illustrate estimating credit losses and recording interest earned on a short-term note receivable.
Financial Assets
This document discusses various financial assets including cash, accounts receivable, and lines of credit. It describes how cash is reported on the balance sheet and defines cash equivalents and restricted cash. It also discusses reconciling bank statements, establishing allowances for doubtful accounts, and estimating credit losses for accounts receivable. The document notes that concentrations of credit risk can occur if a significant portion of receivables are due from a few major customers or those in the same industry or region.
More Related Content
What's hot
Leasing
The document discusses leasing as an alternative to owning assets. It defines key terms like lessor, lessee, operating lease and financial lease. An operating lease is short-term while a financial lease allows the lessee to purchase the asset at the end. Leasing provides benefits to both lessors and lessees like saving capital upfront, flexibility, tax benefits, and improved cash flows. Lease evaluation involves determining costs and returns for both parties.
Project finance
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights and interests held as secondary security or collateral. Project finance is especially attractive to the private sector because companies can fund major projects off balance sheet.
Difference Between Debt And Equity
Debt refers to funds that a company owes to another entity that must be repaid within a specific term. Equity refers to funds raised by issuing shares to the public that can remain invested in the company long-term as ownership. Key differences are that debt is borrowed while equity is owned, debt carries obligation to repay while equity represents ownership, and debt has fixed regular interest payments while equity dividends are variable and irregular. Maintaining a balanced ratio between debt and equity, typically with equity twice that of debt, helps companies cover potential losses.
Types of investment
The document discusses different types of investments, including traditional and alternative investments. Traditional investments include bonds, stocks, small saving schemes, mutual funds, fixed deposits, and real estate. Bonds are loans to entities that pay interest. Stocks represent ownership in companies. Small saving schemes are meant for small amounts. Mutual funds invest in different securities. Fixed deposits earn interest. Real estate can appreciate. Alternative investments include hedge funds, private equity, venture capital, structured products, and collectibles. These have complex structures and are less liquid than traditional investments.
Chapter 09_The Money Markets
The document discusses money markets and the various securities traded within them. Money markets provide short-term funding for participants and a place for investors to store excess cash. Major securities discussed include Treasury bills, certificates of deposit, commercial paper, and repurchase agreements. These instruments vary in issuers, maturity length, and liquidity. Money markets help corporations and governments manage mismatches between cash inflows and outflows.
Asset liability management
This document discusses asset liability management (ALM) in banks. It defines ALM as a mechanism to address risks from mismatches between bank assets and liabilities due to liquidity or interest rate changes. The ALM framework focuses on profitability and viability. It aims to match asset and liability maturities across time horizons. The objectives of ALM include managing liquidity risk, interest rate risk, and currency risks to stabilize profits and the bank's financial position. Tools used in ALM include information systems, organizational structure, and processes to identify, measure and manage various risks.
INVESTMENT DECISION
Investment Decision — Capital Budgeting Techniques — Pay Back Method — Accounting Rate Of Return — NPV — IRR — Discounted Pay Back Method — Capital Rationing — Risk Adjusted Techniques Of Capital Budgeting. — Capital Budgeting Practices
Interest rate
The document is a presentation on the Indian financial system covering various topics such as interest rates, types of interest rates set by the Reserve Bank of India, factors affecting market interest rates, government securities, and public deposits. It provides definitions and levels of interest rates according to different theories. It also outlines the structure and policy rates in India including the repo rate, reverse repo rate, cash reserve ratio, and statutory liquidity ratio set by RBI. Finally, it discusses reasons for changes in interest rates and characteristics of business cycles.
Time value of money
time value of money
,
concept of time value of money
,
significance of time value of money
,
present value vs future value
,
solve for the present value
,
simple vs compound interest rate
,
nominal vs effective annual interest rates
,
future value of a lump sum
,
solve for the future value
,
present value of a lump sum
,
types of annuity
,
future value of an annuity
investment
1. The document provides an introduction to investments, discussing key concepts like primary and secondary markets, securities, and the objectives and process of investment.
2. It defines investment as the commitment of money or resources with the goal of earning future benefits. Individuals invest by saving money instead of spending it currently to gain larger consumption later.
3. The main objectives of investment are increasing returns, reducing risk, and providing liquidity, protection against inflation, and safety of capital. The investment process involves formulating a policy, analyzing opportunities, valuing assets, constructing a diversified portfolio, and regularly evaluating performance.
Business risk and financial risk
The document discusses different types of business and financial risk. Business risk includes strategic, financial, operational, and compliance risk. Financial risk considers how business risk correlates with the level of financial risk, which can be low, high, or a balanced combination. The document outlines steps for risk management, including risk identification, assessment, prioritization, and strategies such as avoidance, reduction, transfer, and retention. Various techniques are provided for analyzing and mitigating risk, such as sensitivity analysis and sequential investment decisions.
Classification of risk
This document classifies and defines different types of risk:
1. Systematic risk includes market risk, interest rate risk, and purchasing power risk which stem from overall market forces outside a company's control.
2. Unsystematic risk is specific to an individual company and can result from business risks like poor management or technological changes, or financial risks from using debt.
3. Risk is associated with the variability and uncertainty of investment returns. Expected return considers the probability weighted average returns from all possible outcomes, while risk is measured by the variance or standard deviation of returns. Both risk and expected return must be examined for investment decisions.
hedging strategy
This document discusses various hedging strategies using futures contracts. It defines anticipatory hedging as using futures to lock in future prices for assets that will be bought or sold. Examples are given such as an airline hedging future jet fuel purchases. The document also discusses hedging portfolios using stock index futures to reduce portfolio beta risk. Key formulas are provided for calculating optimal hedge ratios and determining the number of futures contracts needed to hedge a given exposure or change a portfolio's beta.
Portfolio analysis
This document discusses portfolio analysis and security analysis. It defines portfolio analysis as determining the future risk and return of holding various combinations of individual securities. Portfolio analysis involves diversifying investments across different assets, industries, and companies to reduce non-systematic risk. The document contrasts traditional portfolio analysis, which focuses on lowest risk securities, with modern portfolio theory, which emphasizes combining high and low risk securities to maximize returns at a given level of risk. Key aspects of portfolio analysis include calculating expected returns, variance, and the standard deviation and beta of a portfolio to measure risk. Diversification is presented as an important tool to reduce unsystematic risk.
Capital budgeting decisions
This document provides an overview of capital budgeting decisions and investment evaluation methods. It discusses key concepts like net present value (NPV), internal rate of return (IRR), payback period, and accounting rate of return. The document explains how to calculate each method and their respective acceptance rules. It also compares NPV and IRR, noting they may provide conflicting recommendations for mutually exclusive projects. The document is intended to help readers understand important investment evaluation techniques.
Mutual fund ppt
Mutual funds pool money from investors and invest it in stocks, bonds, and other securities. The money earned through investments and any capital appreciation is shared by unit holders proportionate to how many units they own. The document discusses the history of mutual funds in India from 1964 to present. It describes open-ended and closed-ended funds, as well as growth, income, balanced, and money market funds. The advantages of mutual funds include diversification, professional management, convenience, and tax benefits, while the disadvantages include costs and lack of control. Systematic investment plans allow regular investing of small amounts to achieve long-term goals through rupee cost averaging and the power of compounding.
Financial Markets
Financial Markets - Money market-Organized and Unorganized-Sub markets
Capital market- Primary market-IPO-FPO- NFO, Book Building-Right Issue-Private placement- Bonus issue-Buyback
Secondary Market-Stock exchanges- Role and functions of Stock Exchanges- BSE-NSE.
Regulatory authorities and their functions – RBI, SEBI
Portfolio Diversification
This presentation discusses the importance of having a diversified portfolio with a variety of different kinds of investments and tips on creating a diversified portfolio.
Secondary Markets
This presentation explains Secondary Markets which is a part of the subject Financial Management. This presentation is allied to basic concepts.
Hire Purchase
Hire purchase is a transaction where goods are purchased through installment payments, with ownership transferring upon final payment. Some key points:
- The buyer receives immediate possession but not ownership of the goods, paying a down payment (typically 20%) and installments that include interest.
- If installments are missed, the seller can repossess the goods. Ownership fully transfers after the last installment is paid.
- It allows consumers to spread costs over time while purchasing goods. However, it offers less tax benefits than leasing and the buyer assumes more risk if installments are missed.
What's hot (20)
Viewers also liked
Financial Assets
This document discusses various topics relating to financial assets, including cash, marketable securities, receivables, and notes receivable. It provides information on how these assets are valued for financial statements, cash management techniques, accounting for uncollectible accounts receivable, and calculating interest revenue for notes receivable. Worked examples are provided to illustrate estimating credit losses and recording interest earned on a short-term note receivable.
Financial Assets
This document discusses various financial assets including cash, accounts receivable, and lines of credit. It describes how cash is reported on the balance sheet and defines cash equivalents and restricted cash. It also discusses reconciling bank statements, establishing allowances for doubtful accounts, and estimating credit losses for accounts receivable. The document notes that concentrations of credit risk can occur if a significant portion of receivables are due from a few major customers or those in the same industry or region.
Financial assets lec#2
The document discusses financial assets, money, and the role they play in the financial system. It describes how the financial system allows savings to be transformed into investment by connecting those with loanable funds to borrowers. Financial assets are claims against income or wealth that are usually represented by certificates and related to lending. They are sought after for future returns and as a store of value. The financial system provides an essential channel for the creation and exchange of financial assets between savers and borrowers to acquire real assets and accelerate economic growth.
Other Financial Assets
Other financial assets include stocks, money market mutual funds, and certificates of deposit. Stocks represent ownership in a company, money market mutual funds invest in short-term assets but are not FDIC insured, and certificates of deposit are bank deposits for a fixed time period at a higher interest rate. Financial assets are traded on capital markets, which involve assets that mature in over a year, or money markets, which involve assets that mature in under a year. They can also be traded on primary markets, where only the original holder can redeem the asset, or secondary markets, where the asset can be resold.
Financial Instruments
Yes, an advance payment to acquire debentures of another entity or government T-bills would be classified as a financial asset. This is because the advance payment represents a contractual right to receive the debentures or T-bills in the future, and debentures and T-bills are considered financial assets. So the advance payment itself meets the definition of a financial asset.
Investment Alternatives
hi all, i am shekhar, i uploaded a PPt on Investment Alternatives, so check out & if u wish to know more abt it . email me.
Financial instruments
The document discusses key concepts related to accounting for financial instruments under IAS 32, IAS 39 and IFRS 9 such as definition of financial instruments, classification of financial assets and liabilities, initial measurement, amortized cost method, fair value accounting, transaction costs, compound instruments and other requirements. It provides examples to explain concepts such as business model, classification of instruments as amortized cost or fair value, treatment of transaction costs, calculation of amortized cost and separation of compound instruments into liability and equity components.
Bonds Defined and Catagorized
Bonds are loans given to governments or corporations. They have a par value (principal/face value), a maturity date when the principal will be repaid, and a coupon rate that is the interest paid annually. Bonds are rated based on risk from AAA (safest) to D (riskiest), with higher ratings receiving lower interest rates due to lower risk. Bonds can be resold before maturity, sometimes at a discount if interest rates have changed. Bonds benefit issuers by providing guaranteed interest payments and not imparting ownership, but also legally obligate coupon and principal payments regardless of economic conditions. Main types of bonds include savings bonds, corporate bonds, municipal bonds, treasury bonds, and high yield "
Financial assets ch02
This document discusses various types of financial assets and instruments. It begins by defining real assets as tangible items and financial assets as promises to distribute future cash flows. It then lists and describes various short-term and long-term debt instruments, as well as equity instruments like preferred and common stock. Derivatives, which derive their value from underlying assets, are also covered. The document considers factors in choosing different financial instruments from both issuer and investor perspectives.
Stock offerings and monitoring investo r 6
Investors participate in both the primary and secondary stock markets. In the primary market, corporations issue initial public offerings (IPOs) of stock to raise capital, while secondary stock offerings allow existing public companies to raise additional funds. The secondary market provides liquidity for investors and corporations through public stock exchanges like the NYSE and Nasdaq. Investors monitor corporations and influence them through activities like proxy voting in order to maximize the value of their stock holdings over time.
Money markets ch. 9 (uts)
This document provides an overview of money market securities and their use by financial institutions. It discusses various short-term debt instruments like Treasury bills, commercial paper, negotiable certificates of deposit, repurchase agreements, and bankers' acceptances. These securities generally mature within one year and are used by corporations and governments to obtain short-term funding. Financial institutions use money markets to earn returns on excess funds and maintain liquidity to meet cash needs. The value of these non-interest bearing securities is determined by the present value of future payments using the required rate of return.
Money markets ch. 9 (uts)
This document provides an overview of money market securities and their use by financial institutions. It discusses various short-term debt instruments like Treasury bills, commercial paper, negotiable certificates of deposit, repurchase agreements, and bankers' acceptances. These securities generally mature within one year and are used by corporations and governments to obtain short-term funding. Financial institutions use money markets to earn returns on excess funds and maintain liquidity to meet cash needs. The value of these non-interest bearing securities is determined by the present value of future payments using the required rate of return.
Investment management
The document provides an overview of investment management concepts including the meaning of investment, objectives of investment, and financial markets. It defines investment as committing funds with the expectation of a positive return in the future. The objectives of investment are outlined as maximizing return, minimizing risk, and hedging against inflation. Different types of financial markets are also introduced such as the primary market, stock exchanges, and their functions in facilitating investment activities.
Introduction to investments
This document outlines the course Securities Analysis and Portfolio Management. The objectives of the course are to provide students with frameworks for evaluating investment avenues and managing funds. It will cover various financial instruments, markets, regulations, and portfolio management techniques. The course is divided into 6 units that will cover topics such as fixed income securities, security analysis methods, modern portfolio theories, and portfolio strategies. Students will learn to analyze investments and manage portfolios effectively.
Securitisation and reconstruction of financial assets and enforcement of secu...
The SARFAESI Act enables secured creditors like banks and financial institutions to enforce their security without court intervention. It allows creditors to take possession of secured assets, sell them, or assign rights over them to recover loans in case of default. The Act established mechanisms for asset reconstruction companies to acquire financial assets from banks and issue security receipts to investors. It defines terms like borrower, financial asset, and non-performing asset. The constitutional validity of the Act was upheld by the Supreme Court. Methods of recovery include securitization, asset reconstruction, and direct enforcement of security. Amendments allowed debt to equity conversion and banks to purchase auctioned properties under certain conditions.
Term loan finance main ppt
The document discusses various types of term loans including long-term loans, intermediate term loans, and short-term loans. Long-term loans mature between 1-7 years and are used for major business expenses. Intermediate term loans mature in less than 5 years and are used to purchase equipment and vehicles. Short-term loans mature within 1 year and provide quick access to funds but have higher interest rates.
Secondary market
The document discusses secondary markets and stock exchanges. It defines the secondary market as the market where existing securities of companies are traded. Investors buy and sell stocks and bonds among themselves in secondary markets, without providing new funds to the issuer. Stock exchanges like the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) provide organized markets for trading these secondary market securities and play an important role in capital formation and liquidity. The BSE and NSE are the largest stock exchanges in India in terms of market capitalization and trade volume.
Secondary market
1) The secondary market refers to the market where existing securities are traded, providing a platform for investors to buy and sell securities that are already listed on a stock exchange.
2) The primary difference between the primary and secondary market is that in the primary market, securities are first offered to the public for subscription to raise capital, while in the secondary market, already existing securities are traded.
3) Stock exchanges like NSE provide a trading platform regulated by SEBI, where transactions in securities can be done electronically through systems like NEAT.
Portfolio markowitz model
The document presents information on the Markowitz portfolio-optimization model. It discusses how the model provides tools for identifying portfolios that offer the highest returns for a given level of risk. It also notes that combining assets with low positive or negative correlations allows investors to reduce portfolio risk below the average risk of individual assets. The document then examines the security market line, efficient frontier, types of risk, and provides an example calculation of expected returns and risks for individual securities and a combined portfolio.
Product mix powerpoint
This will tackle about the Product length, width , depth , consistency etc. It will also include the brands, Trademark and brand name.
Viewers also liked (20)
Securitisation and reconstruction of financial assets and enforcement of secu...
Securitisation and reconstruction of financial assets and enforcement of secu...
Similar to Financial Assets New
Money & Banking
This document discusses the key concepts of money and banking. It defines money as anything generally accepted as a medium of exchange, like currency notes and coins. Money serves four main roles: as a medium of exchange, unit of account, store of value, and standard for deferred payment. Historically, money has taken the form of commodity money, backed by valuables like gold, and fiat money, which is not backed but widely accepted. Modern forms of money include currency, checkable deposits in banks, and various types of paper money not backed by commodities. For a currency to function well as money, it should have properties of portability, divisibility, durability and recognizable value.
Education
Financial markets can be classified in several ways, including by maturity, seasoning, timing/delivery, and organizational structure. The money market deals in short-term securities of less than 1 year, while the capital market trades long-term securities over 1 year. Primary markets issue new securities, and secondary markets facilitate subsequent trades of already issued securities. Cash markets require immediate delivery, while forward markets schedule future delivery. Exchange markets operate on organized exchanges, and over-the-counter markets consist of decentralized dealers. Financial instruments include assets like currency, loans, deposits, securities, and shares, as well as commitments and pledged assets.
Accounting
Accounting involves recording, classifying, and summarizing financial transactions and interpreting the results. There are several types of accounting including financial, cost, management, and tax accounting. Financial accounting provides information on the resources, obligations, and activities of an economic entity. Cost accounting determines the cost of products and helps management control costs. Management accounting provides information to assist management in decision making and controlling activities. Tax accounting prepares tax returns based on financial accounting information but adjusted for tax reporting requirements.
Negotiable Instruments Act - Legal Environment of Business - Business Law - ...
The word ‘negotiable’ means transferable by delivery and instrument means a written document by which a right is created in favorable of some person. The term negotiable instrument therefore literally means a document transferable by delivery.
FINANCIAL INSTktk.pptx financial insitution
Financial instruments are monetary contracts that can be created, traded, and settled. They include cash, ownership interests, and contractual rights to deliver or receive assets. Financial instruments fall into two main categories: derivatives, whose value is based on underlying assets or rates, and cash instruments, whose value is directly determined by markets. Within these categories are debt-based instruments like bonds and loans as well as equity-based instruments like stocks and stock options. A financial instrument formally represents a legal agreement involving monetary value and can be further classified as a financial asset, borrowing, share, or other type of instrument.
FINANCIAL INSTktk.pptx financial insitution
Financial instruments are monetary contracts that can be created, traded, and settled. They include cash, ownership interests, and contractual rights to deliver or receive assets. Financial instruments fall into two main categories: derivatives, whose value is based on underlying assets or rates, and cash instruments, whose value is directly determined by markets. Within these categories are debt-based instruments like bonds and loans as well as equity-based instruments like stocks and stock options. A financial instrument formally represents a legal agreement involving monetary value and can be further classified as a financial asset, borrowing, share, or other type of instrument.
International Financial System
The document discusses key elements of international financial systems including:
1) It defines international finance and discusses topics like exchange rates and foreign direct investment.
2) The global financial system consists of institutions that operate internationally, as opposed to nationally or regionally, and includes organizations like the IMF and central banks.
3) Core elements of any financial system include money, banking institutions, financial markets, instruments, and services.
Accounting terminology
This document defines key accounting terminology used in business. It explains that a proprietor owns and bears the risks of a business. Capital refers to the money and assets invested in a business by the proprietor. Drawings are amounts withdrawn by the proprietor for personal use, reducing capital. Goods are items purchased for resale. An accounting period is a set time frame for organizing financial records, typically a year. Other terms defined include stock, debtors, creditors, purchases, sales, assets, liabilities, income, expenses, losses, and vouchers.
Introduction to accounting
Accounting is the art of identifying, classifying, recording, and interpreting financial transactions. It involves recording transactions related to a business or person under relevant heads. Bookkeeping is the systematic recording of these transactions through journals, ledgers, and financial statements to keep track of revenues, expenses, assets, and liabilities. The goal is to evaluate the overall financial performance and position of a business.
Blo ppt notes
This document provides an overview of negotiable instruments. It defines a negotiable instrument as a written document that includes a promise to pay a certain amount of money to the bearer. Key points include:
- Negotiable instruments must be in writing, signed, include an unconditional order/promise to pay a certain sum of money, and include delivery.
- Common types of negotiable instruments are promissory notes, bills of exchange, and cheques.
- Features include being transferable, providing title to the transferee, and certain presumptions around consideration, dates, and titles.
Account1
Assets are economic resources owned by a business that are expected to provide future benefits. Assets are classified as fixed assets, current assets, and fictitious assets. Fixed assets are used long-term in the business, while current assets are expected to be converted to cash or used in production within a year. Examples of current assets include cash, inventory, and accounts receivable. Fictitious assets have no real value. The accounting equation states that assets must equal liabilities plus owners' equity.
Sankar.presentation1.accountancy
Introduction to Basic Accounting. The PPT would help in understanding the accounting process in a very easier way
Money
Money can take many forms and is generally defined as anything widely accepted as payment. There are several definitions of money including descriptive definitions focusing on its functions as a medium of exchange, store of value, and unit of account. Legal definitions consider anything a government declares as money to be money. Historically commodity and metallic monies like gold, silver, and coins were used but issues with storage, transport, and divisibility led to the development of paper and electronic currencies not backed by commodities. Money serves primary functions like facilitating specialization and trade as well as secondary functions like enabling loans and acting as an economic policy tool, though it also has disadvantages like creating economic instability.
Lec 2 Basic Financial Statements and Accouting Equation.pptx
The document discusses the accounting equation and basic financial statements. It defines the accounting equation as assets equaling liabilities plus shareholders' equity. It lists common types of assets like cash, accounts receivable, and fixed assets. It also discusses current and long-term liabilities and types of liabilities companies may have like accounts payable, notes payable, and deferred taxes. The document provides an overview of key concepts in accounting including the accounting equation, assets, and liabilities.
Slides accounting
This document provides definitions and key concepts related to accounting. It defines accounting as identifying, measuring, recording, and communicating financial information about a business entity. The functions of accounting are to systematically record transactions, protect business property, communicate results, and comply with legal requirements. Useful terminology discussed includes capital, liabilities, assets, and debtors. Capital refers to the owner's investment in the business, while liabilities are amounts owed to others. Assets are resources owned that have monetary value, and debtors are individuals who owe money to a business for goods purchased on credit.
Book keeping
This document provides definitions and explanations of key concepts in bookkeeping and accounting. It defines bookkeeping as recording business transactions in an organized manner. The double-entry system is described as recording each transaction with two entries, one as a debit and one as a credit. Advantages of the double-entry system include ensuring accuracy, enabling calculation of profits, and preventing fraud. Disadvantages include the cost and complexity of maintaining multiple accounting records.
Accounting chapter-2
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
AFM Lecture 2.pptx
This document defines basic accounting terms related to business transactions, capital, assets, liabilities, income, expenses, and financial statements. It explains key concepts such as the meaning of assets, liabilities, capital, income, expenses, purchases, and sales. It also describes common accounts like debtors, creditors, cash, bank, and the different types of each account. Finally, it outlines essential books of accounts like journal, ledger, and trial balance which are used to record business transactions.
Investment Management Unit I.pptx
The document provides an overview of securities markets in India. It discusses the emergence of joint stock companies in India in the 18th-19th centuries and how this led to the development of corporate securities markets. It also describes how the British government first issued sterling bonds in London and later started issuing rupee-denominated government securities in India, establishing the government securities market. The document defines different types of marketable securities like debt and equity securities and provides details on stock exchanges, new issue markets, and the various segments of the Indian securities markets.
property-guidelines (2).pptx
The document provides an overview of roles and responsibilities related to procurement and asset management. It discusses the roles of the PAMS Head, Admin Support Assistant, Procurement Officer, Purchase Canvasser, Purchaser, Property Custodian, and Department/KLC Property Custodians. It also provides guidelines for asset management, including definitions, inventory procedures, and the recording of assets.
Similar to Financial Assets New (20)
Negotiable Instruments Act - Legal Environment of Business - Business Law - ...
Negotiable Instruments Act - Legal Environment of Business - Business Law - ...
Lec 2 Basic Financial Statements and Accouting Equation.pptx
Lec 2 Basic Financial Statements and Accouting Equation.pptx
More from Sayed Janan
The Financial Environment
Financial markets allow for the exchange of funds between those who have savings (surplus units) and those who need funds for investment in real assets (deficit units). They do this through financial instruments that represent claims against issuers. There are two main types of financial markets - the money market for short-term instruments and the capital market for long-term debt and equity. Within each market, primary markets facilitate new issues while secondary markets allow for the exchange of existing securities. Financial intermediaries such as banks, insurance companies, and pension funds facilitate indirect finance by collecting funds through various financial claims and allocating them through purchases of direct claims.
Negotiable Instruments6
Negotiable instruments are written documents that entitle the holder to a sum of money. There are three main types: promissory notes, bills of exchange, and checks. A promissory note contains an unconditional written promise by the maker to pay a specified sum to the payee. A bill of exchange is an unconditional order in writing from the drawer to the drawee to pay a specified sum to the payee. A check is a written order from a depositor to their bank to pay a specified sum to the payee or bearer on demand.
Role Of Commercial Banks In The Economic Development Of A Country3
Commercial banks play an important role in a country's economic development by promoting capital formation, investment in new enterprises, and trade and industry. They do this by accepting deposits and lending to businesses, providing credit to new and growing businesses, and financing national and international trade through various financial instruments. Commercial banks also contribute to agricultural development, balanced regional growth, implementation of monetary policy, and export promotion through specialized services.
Banker And Customer Realationship5
The relationship between bankers and customers is important. Bankers are dealers in capital who borrow from depositors and lend to borrowers, acting as intermediaries. Customers maintain accounts with banks. The general relationship is one of debtor and creditor, with banks owing safekeeping of deposits. There are also special relationships, like principal and agent when banks perform services on customers' behalf, or bailee and bailer for safekeeping of valuables. Customers have rights like accessing accounts, while banks have duties like honoring checks according to terms of accounts and loans. Both parties also have obligations regarding secrecy of accounts.
Recruiting [Compatibility Mode]
This document discusses recruitment and the process of seeking potential job candidates. It provides details on Sultan Mohammad's qualifications and work experience in human resource management and training. Additionally, it outlines the objectives of recruiting which are to inform candidates of vacancies and receive applications. The document also examines factors that influence recruiting such as organization image, job attractiveness, and internal and external policies. Lastly, it compares the advantages and disadvantages of internal promotion versus external recruiting.
Role Of Commercial Banks In The Economic Development Of A Country
Commercial banks play an important role in a country's economic development in several ways:
1. They promote capital formation by accepting deposits and lending to businesses for productive purposes.
2. They provide loans to entrepreneurs to invest in new enterprises, increasing productive capacity.
3. They support trade and industry through services like bank drafts, checks, and letters of credit that revolutionized commerce.
4. They also aid agricultural development through loans that boost farm productivity and incomes.
Negotiable Instruments
Negotiable instruments are written documents that entitle the holder to a sum of money. There are three main types: promissory notes, bills of exchange, and checks. A promissory note contains an unconditional written promise by the maker to pay a specified sum of money. A bill of exchange is an unconditional order in writing from a drawer to a drawee requiring payment to a payee. A check is a written order from a depositor to a bank to pay a specified sum to a payee on demand.
Credit And Debit
The document discusses the origins and meanings of credit and debit terms, which come from Latin roots related to owing and believing. It provides several theories for why "Cr" stands for credit and "Dr" for debit in accounting. Credit is defined as goods exchanged now for a future promise of payment, based on trust in the debtor's ability and willingness to repay. The main functions of credit in an economy include providing working capital, enabling large-scale production, facilitating new business ventures, and allowing consumers to purchase goods over time.
More from Sayed Janan (8)
Role Of Commercial Banks In The Economic Development Of A Country3
Role Of Commercial Banks In The Economic Development Of A Country3
Role Of Commercial Banks In The Economic Development Of A Country
Role Of Commercial Banks In The Economic Development Of A Country
Recently uploaded
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka Indian satta Matka Dpboss Matka Kalyan Chart Matka Boss otg matka Guessing Satta Business storytelling: key ingredients to a story
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership at Agile Tour Geneve 2024
2024-6-01-IMPACTSilver-Corp-Presentation.pdf
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Best practices for project execution and delivery
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Digital Transformation Frameworks: Driving Digital Excellence
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
Part 2 Deep Dive: Navigating the 2024 Slowdown
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Schedule Unveiled
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto RicoCorey Perlman, Social Media Speaker and Consultant
Social media for business Easily Verify Compliance and Security with Binance KYC
Use our simple KYC verification guide to make sure your Binance account is safe and compliant. Discover the fundamentals, appreciate the significance of KYC, and trade on one of the biggest cryptocurrency exchanges with confidence.
Structural Design Process: Step-by-Step Guide for Buildings
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Best Forex Brokers Comparison in INDIA 2024
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Digital Marketing with a Focus on Sustainability
Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
Recently uploaded (20)
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
Organizational Change Leadership Agile Tour Geneve 2024
Organizational Change Leadership Agile Tour Geneve 2024
Digital Transformation Frameworks: Driving Digital Excellence
Digital Transformation Frameworks: Driving Digital Excellence
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Authentically Social by Corey Perlman - EO Puerto Rico
Authentically Social by Corey Perlman - EO Puerto Rico
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
Structural Design Process: Step-by-Step Guide for Buildings
Structural Design Process: Step-by-Step Guide for Buildings
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Financial Assets New
- 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.