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Derivatives


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Consumption Asset


An asset that is held primarily for consumption (end-user needs) and not usually for investment or resale. Examples include different types of commodities such as oil, cotton, coffee, copper, iron, etc. An asset may concurrently be a consumption asset and an investment asset.

A consumption asset provides value through its use, immediate or on the future depending on its ability to be stored. Demand for a consumption asset is mainly driven by the consumption need.


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