Finman 7
10. properties of Financial Assets
1. Money
2. Divisibility and Denomination
3. Reversibility
4. Term of Maturity
5. Liquidy
6. Convertibility
7. Currency
8. Cash Flow and Return Predictability
9. Complexity
10. Tax Status
relates to the minimum size at which a financial asset can be liquidated and exchange for money
Divisibility
refers to the cost of investing in a financial asset and then getting out of it and back into casg again .
Reversibility
reversibility is also referred to as ______.
roundtrip cost
the length of the interval until the late when I the instrument is scheduled to make its the owner is entitled to demand liquidation.
Term of Maturity
serves an important and widely used function.
Liquidity
An important property of some financial assets
Convertibility
Some preferred stock may be convertible into common stock (T or F)
True
Most financial assets are denominated
Currency
investor will realize by holding a financial asset
Cash Flow and Return Predictability
means the integration of financial markets throughout the world into an international financial market.
Globalization
forces government to deregulate or liberalize
Global Competition
Financial Markets can be classified as
internal and external
internal Market also called
national market
internal market can be decomposed into two parts:
domestic market and foreign market
where issuers domiciled in the country issue security
domestic market
securities of issuers not domiciled in the country are sold and traded
foreign market
commonly referred to as the offshore market
External market
External market also called
International Market
Some contracts give the contract holder either the obligation or the choice o buy and sell s financial asset.
Derivative Market
What are intangible assets?
Financial assets, Financial Instrument or securities
who seek to transform the final liabilities different financial assets preferred by the public is
Financial Intermediaries