answersLogoWhite

0

What is a real asset?

Updated: 4/28/2022
User Avatar

Wiki User

15y ago

Best Answer

Real assets are things that have intrinsic value like gold, land, and personal property. This is as opposed to things like stocks, bonds, and paper money which are called financial assets.

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is a real asset?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

Is cash vault a financial asset or a real asset?

real asset real asset


Is cash a financial asset or a real asset?

financial-current asset


Is goodwill a real asset?

No, goodwill is not a real asset. There are assets that are cannot be measured directly but in the end, they will make changes to the performance of the enterprise.


What is the difference between a real asset and a financial asset?

A real asset is a tangible asset like gold or real estate. You can hold it or place your hand on it. It has intrinsic value in and of itself. A financial asset is not tangible. Instead, its existence is "represented by evidence of its existence such as a paper certificate, like money, a savings passbook, a stock certificate, or a bond. The paper in money has no intrinsic value. Its value is derived by virtue of what it represents.


With examples explain the difference between real assets and financial assets?

Real asset: These are used to produce the Firm's product and services. They include Tangible assets such as;MachineryFactoriesVehiclesOffices.Furthermore, real asset includes intangible assets such as;Technical knowledge (intellectual property IP)TrademarksPatents.Financial asset: The firm finances it's investments in real asset by issuing financial assets in the debt market for investors. A share of stock is financial asset which has a value as a claim on the firm's real asset and the income those assets will produce. A bank loan is a financial assetFinancial market: Where stocks, bonds security's are traded or change hands. Investor (shareholder): Who lend the money to the issuer in expectation of profit on investment).Edited by Naren