- Any item or possession of monetary value that is legally owned by a person. Assets can include real or personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, etc.
important, gain, worth, benefit, value
Related Terms and Acronyms
- Adjusted Basis — Definition,
- The amount you use to determine your profit or loss from a sale or exchange of property.
- Asset Case — Definition,
- A bankruptcy proceeding where there are non-exempt assets that might be accessible to pay creditor's claims.
- Capital Assets — Definition,
- Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
- Capital Investments — Definition,
- Money used to purchase permanent fixed assets for a business, such as machinery, land or buildings as opposed to day-to-day operating expenses.
- Chattel — Definition,
- Personal property that can be moved.
- Fixed Assets (FA) — Acronym, Important,
- Assets like machinery, land, buildings, or property used in operating a business that will not be consumed or converted into cash during the current accounting period.
- Fixture — Definition,
- Personal property that becomes real property when it is attached to a building. Examples include chandeliers, built-in bookcases and cabinets and drapery rods.
- Home Equity (HE) — Acronym, Very Important,
- The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
- Illiquid Asset — Definition,
- An asset that cannot be sold easily or in a timely manner for its full value.
- Intangible Asset — Definition,
- Non-physical resources or rights to other assets. Patents, goodwill, permits and computer programs are examples of intangible assets.
- Intangible Property — Definition,
- Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
- Liquid Assets — Definition,
- Cash and other property that can be converted quickly and easily into cash.
- Monetary Value — Definition,
- A property's monetary value is its worth if sold at this moment in time.
- Net Interest Margin (NIM) — Acronym,
- Net interest income (the difference between interest income and interest expense) as a percentage of average total assets.
- Non-liquid Asset — Definition,
- A possession that can't be transformed readily into cash. Stocks and bonds are liquid assets because they can be sold easily; a house is a non-liquid asset because it takes time to sell.
- Personal Property (PP) — Acronym,
- Property that is movable and not permanently attached to a dwelling or structure.
- Policyholder Surplus — Definition,
- A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
- Protected Cell Company (SPC) — Acronym,
- A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
- Secondary Market — Definition,
- A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
- Segregated Fund — Definition,
- Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
- Short-Term Capital Gain (STCG) — Acronym,
- Your gain from the sale of a capital asset that you held for one year or less.
- Short-term Capital Loss — Definition,
- Your loss from the sale of a capital asset that you held for one year or less.
- Solvency — Definition,
- To be able to meet one's financial liabilities in the short or long term.
- Sub Account — Definition,
- A separate financial account used to keep track of a department's finances.
- Total Admitted Assets — Definition,
- What assets an insurance company is legally allowed to include when determining its financial solvency.
- Trustee — Definition,
- A person who holds and manages assets for the benefit of beneficiaries.
- Unaffiliated Investments — Definition,
- Investments in assets made by an insurance company where they have no control over the assets.