Financial asset

Capital allocation

A financial asset is something that gets its value from a contractual right or ownership claim and that cannot be consumed or used otherwise rather than to exchange for other products.

Types

• Cash, certificate of deposit.
• Stock.
• [[, bonds, mutual funds, and 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..