- Asset Class
- A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations. The three main asset classes are equities (stocks), fixed-income (bonds) and cash equivalents (money market instruments).
It should be noted that in addition to the three main asset classes, some investment professionals would add real estate and commodities, and possibly other types of investments, to the asset class mix. Whatever the asset class lineup, each one is expected to reflect different risk and return investment characteristics, and will perform differently in any given market environment.
Asset classes and asset class categories are often mixed together. In other words, describing large-cap stocks or short-term bonds asset classes is incorrect. These investment vehicles are asset class categories, and are used for diversification purposes.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
asset class — Indica un insieme di titoli strettamente correlati fra loro e simili per profilo di rischio e rendimento … Glossario di economia e finanza
Asset Class Breakdown — The relative percentages of core asset classes such as equities, fixed income and cash, along with real estate and international holdings, found within a mutual fund, exchange traded fund or other portfolio. Further breakdowns are sometimes made… … Investment dictionary
Multi-Asset Class — A combination of asset classes (such as cash, equity or bonds) used as an investment. A multi asset class investment would contain more than one asset class, thus creating a group or portfolio of assets. The weights and types of… … Investment dictionary
Sub-Asset Class — More specific holdings of a general category of assets. A sub asset class is a collection of assets that have common characteristics within both the asset class and the sub asset class. The sub asset class also has… … Investment dictionary
Asset-backed security — In finance, an asset backed security is a type of debt security that is based on pools of assets, or collateralized by the cash flows from a specified pool of underlying assets. Assets are pooled to make otherwise minor and uneconomical… … Wikipedia
Asset Mix — The classification of all assets within a fund or portfolio. Assets are assigned to one of the core asset classes: stocks (equities), bonds (fixed income), cash and real estate. Other categories that are sometimes considered asset classes are… … Investment dictionary
Asset price crash — An asset price crash is a sudden and usually unexpected fall in the price of a particular asset class. Crashes usually follow asset price inflations. Examples of asset price crashes include Dutch tulips in the 1600s, Japanese metropolitan real… … Wikipedia
Asset Depreciation Range - ADR — An elective accounting method established by the Internal Revenue Code for tangible assets placed into service after 1970. Prior to the ADR system, there were over 100 asset classes for tangible property based on the taxpayer s business and… … Investment dictionary
class A/B/C share — UK US noun [C, usually plural] (also A/B/C share) FINANCE, STOCK MARKET ► one of the types of shares into which a company s common stock is divided, each of which offers shareholders a different voting right, payment amount, etc.: »Class A shares … Financial and business terms
asset value (per share) — break up value The total value of the assets of a company less its liabilities, divided by the number of ordinary shares in issue. This represents in theory, although probably not in practice, the amount attributable to each share if the company… … Accounting dictionary