What are the three types of financial assets?

Understand the Problem

The image provides information on the three types of financial assets: fixed income or debt, common stock or equity, and derivative securities.

More Information

The three primary types of financial assets are fixed income or debt, common stock or equity, and derivative securities. These classifications are widely recognized and each category serves different investment purposes and involves distinct risk profiles.

Tips

A common mistake is conflating financial assets with physical assets. Financial assets include securities like stocks and bonds, whereas physical assets are tangible items such as property or equipment.

Sources

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