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Investment Dictionary

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Financial Investment


Financial investment is any financial asset that should provide a return for investor. Financial asset is an asset that doesn’t have tangible form and has some financial obligations to its owner. All securities are financial investments. 


Examples of financial investment: stocks, bonds, cash in saving account, investment funds and other. But real estate or other tangible asset investments would not fit financial investment category. Whether the investment is financial whether tangible, but it can’t be both in one time.


Financial investments are more liquid assets than non-financial, especially if such securities are traded on some stock exchange. Listed financial instruments can be bought or sold within a minutes or even seconds if the stakes aren’t very large and the trading volume on the market is very high. Unlisted financial tools are less liquid assets but still can be traded in over-the-counter market in quite large amounts.


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