Financial Definitions - Asset Allocation
Assets allocation is sometimes known as “apportioning of investment funds among categories of assets”. Examples could be cash equivalents, stocks, and fixed income investments. Also, your tangible assets come into play, including precious metals (diamonds, gold, etc.), real estate, and collectibles. This will of course apply to sub-category assets like government, municipal, and corporate bonds. Included in this can be what they call industry groupings of common stock. Asset allocations can in turn affect risk and return so it stands as a key factor in personal financing, financial planning and investment portfolio management.
Other Entries That Might Interest You:Financial Definitions - Asset Allocation (Mutual Funds) --->Asset allocations with mutual funds is asset allocation that changes between bonds, stocks, and money market securities to optimize shareholder returns while minimizing their risk. These mutual funds, have become the main stay these days because they avoid single share....Financial Definitions - Asset Coverage --->Asset coverage usually refers to the net assets of a company ability to pay down (if need be) debts of any kind. These debts can also be market equity positions investments, or perhaps preferred stock items. There is a specific....Financial Definitions - Asset Financing --->Asset financing is financing that tries to convert certain assets into working cash in return for a security interest in those assets. The asset financing is replacing the term "commercial financing". Most all major banks team with commercial financing companies....Financial Definitions - Asset Coverage Part #2 --->Asset coverage calculations can be communicated as a percentage as week. To do this we use the dollar amount of "of coverage per unit" and dividing that number by the units. Notes On Asset Coverage: 1)Asset coverage is critical so....Financial Definitions - Asset --->An asset is anything that has a monetary, commercial or exchange value - this could be in the form of deposits, securities, or property owned by an individual or a business. For personal loans and financing, the banks usually see....
No comments yet