The following is true of financial assets:
A)companies issue financial assets in order to raise capital (money).
B)investors purchase financial assets in order to earn a return on funds they don't currently need.
C)they differ from real assets in that they are pieces of paper as opposed to physical objects.
D)All of these are true.

Question

The following is true of financial assets:
A)companies issue financial assets in order to raise capital (money).
B)investors purchase financial assets in order to earn a return on funds they don't    currently need.
C)they differ from real assets in that they are pieces of paper as opposed to physical objects.
D)All of these are true.

Quizplus · Accepted Answer

All of these statements are true. Companies issue financial assets such as stocks and bonds to raise capital, while investors purchase these assets to earn returns on their funds. Financial assets differ from real assets in that they represent ownership or claims to underlying assets rather than being physical objects themselves.

The Following Is True of Financial Assets