Asked by Vaishnavi Surnis on Jul 25, 2024
Verified
The following is true of financial assets:
A) companies issue financial assets in order to raise capital (money) .
B) investors purchase financial assets in order to earn a return on funds they don't currently need.
C) they differ from real assets in that they are pieces of paper as opposed to physical objects.
D) All of these are true.
Financial Assets
Economic resources or ownerships that are convertible into cash or will generate cash in the future, such as stocks or bonds.
Capital
In finance, it refers to the financial assets or resources that individuals or enterprises use for investing, producing goods, or services.
Real Assets
Physical or tangible assets that have intrinsic value due to their substance and properties, such as real estate, commodities, or natural resources.
- Contrast financial assets with real assets, get acquainted with the fundamentals of bonds, and grasp the concept of financial obligations.
Verified Answer
EB
Elvira BugawitJul 29, 2024
Final Answer :
D
Explanation :
All of these statements are true. Companies issue financial assets such as stocks and bonds to raise capital, while investors purchase these assets to earn returns on their funds. Financial assets differ from real assets in that they represent ownership or claims to underlying assets rather than being physical objects themselves.
Learning Objectives
- Contrast financial assets with real assets, get acquainted with the fundamentals of bonds, and grasp the concept of financial obligations.