Financial Assets

Asset Management
Asset Management involves the systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner. This term is typically used in the financial world to describe the management of investments, aiming to grow their value over time and achieve higher returns.
Asset-Backed Commercial Paper (ABCP)
Asset-Backed Commercial Paper (ABCP) refers to short-term debt instruments issued by financial institutions, which are backed by physical assets such as receivables, leases, or loans.
Bourgeoisie
Term used by Marxist economists to denote the social class that owns property and financial assets and thus derives income from investments. Also may be used to refer to the middle and upper classes and the prevailing social values of mainstream society.
Capital Flight
Capital flight refers to the large-scale exit of financial assets and capital from a country due to economic or political instability, or in search of higher returns elsewhere.
Cost of Carry
Cost of carry refers to the expenses associated with holding a particular asset over a period of time, which can include storage costs, insurance, and financing.
Expectations
Views of the future that inform consumer, investor, business, and government decisions. Various factors can affect expectations and thereby impact the value of financial assets and business entities.
Financial Assets
Financial assets include stocks, bonds, rights, certificates, bank balances, and other securities, distinguishing themselves from tangible, physical assets like real property.
Financial Instruments
Financial instruments are monetary contracts between parties. They can be created, traded, modified, and settled. They may be cash (currency), a contractual right to deliver or receive cash (as expressed by a bond), or another type of instrument that conveys ownership (equity).
Hard Cash
Historically, coin made of precious metal. Nowadays it may refer to any readily available money, whether paper or metal.
Investment Demand
Investment demand refers to the desire and willingness of firms and individuals to invest in various projects and financial assets under given economic conditions.
Near Money (Quasi Money)
Near money, also known as quasi money, refers to assets that are not as liquid as cash but can be quickly converted into cash and used to settle debts. Examples include bills of exchange, savings accounts, and treasury bills.
Quasi Money
Quasi money, also known as near money, refers to assets that are not cash but can be quickly converted into cash with little or no loss of value.
Repatriation
Repatriation involves the movement of financial assets or profits of an organization or individual from a foreign country back to their home country, often for investment or distribution purposes.
Reserve Requirement
Understanding the Federal Reserve System's rule mandating the financial assets that member banks must keep in the form of cash and other liquid assets as a percentage of demand deposits and time deposits.
Security
Security refers to various forms of assurances provided to lenders or measures taken in financial and e-commerce contexts to ensure the integrity, privacy, and authenticity of transactions or assets.
Sovereign Wealth Fund (SWF)
A sovereign wealth fund (SWF) is a state-owned investment fund composed of various financial assets strategically managed to increase wealth and provide financing for the future economic needs of the nation.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.