What are the main types of financial assets?
a contractual claim to something of value; modern economies have four main types of financial assets: bank deposits, stocks, bonds, and loans. In reality, there are many more types of financial assets (like derivatives, calls, puts, and so on), but you only need to know the basics of these four types for this course.
What is financial asset collection?
A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of finance. Portfolio risk refers to the possibility that an investment portfolio will not generate the expected rate of return.
What are 2 assets?
Key Takeaways
- Level 2 assets are financial assets and liabilities that do not have regular market pricing, but whose fair value can be determined based on other data values or market prices.
- Level 2 assets are the middle classification based on how reliably their fair market value can be calculated.
What are the two types of financial instruments?
Financial instruments may be divided into two types: cash instruments and derivative instruments.
- Cash Instruments.
- Derivative Instruments.
- Debt-Based Financial Instruments.
- Equity-Based Financial Instruments.
What are financial assets and financial liabilities?
Financial liability – an obligation to deliver cash or another financial asset. Financial asset – any asset that is cash, a contractual right to receive cash or another financial asset from another party, or an equity instrument issued by another entity.
What are assets and types of assets?
An asset is a resource owned or controlled by an individual, corporation. Common types of assets include current, non-current, physical, intangible, operating, and non-operating.
What are two types of accounting?
The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur. Generally accepted accounting principles (GAAP) requires accrual accounting.
What are the two forms of statement of financial position?
For investors considering whether to purchase stock in a company, two essential types of financial statements to analyze are the balance sheet and the income statement.
What are types of financial instrument?
There are typically three types of financial instruments: cash instruments, derivative instruments, and foreign exchange instruments.