A financial asset is an asset that has no physical characteristics, but rather derives its value from a monetary basis, a contractual claim, or a contract whose settlement may affect the holder’s own equity, whether it is a derivative contract or non-derivative contract. Examples of financial assets whose value is derived from a monetary basis include monetary assets such as cash or cash equivalent and bank deposit.
The contractual claim gives a holder the right to receive an amount of money (cash or otherwise) or another financial asset from another party or to exchange financial assets/ financial liabilities with another party under favorable conditions.
In a nutshell, the main types of financial assets are:
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