What is Financial Assets? Definition and meaning

Financial Assets

Definition: Financial Assets are financial securities whose value are derived from contractual right or claims. They do not have a physical existence, but they are present in the form of certificates or listings on a computer screen.

Some examples of financial assets are: cash, stock (equity shares of a company), bonds, mutual funds and certificates of deposits, receivables, derivatives, commercial papers, stocks and other money and capital market instruments. They are tradable in a money or capital market such as Stock Exchanges, Financial institutions, etc.

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