Question

Describe different categories of investments in financial assets and list the accounts used by giving examples. PLEASE GIVE EXAMPLES AND DONT USE BOOK DEFINITIONS

Answer 1

we can say that financial aseet is a that the value of it is derived from other which can be claimed the right on that. in most cases it has no any physical form. Mostly financial assets are traded at the market place.

Here we can go through the financial assets,

1 Cash ? Bank deposits

it can be deppositted in a bank account. for maintaining such investments Bank accounts and Cash accounts are used

2 stocks

it is the securities traded in the stock exchanges. we can buy and sell it. the demat account trading accounts are maintained for it

3 bonds

it is the decument issued by companies for aquiring fixed cost finance.

4 mutual funds

this is as like stocks. but a mediator will be there.