Answer to Question #117626 in Finance for Berrin

Question

Describe different categories of investments in financial assets and list the accounts used by giving examples

Answer 1

There are three main asset classes: equities (stocks), fixed income (bonds), and cash equivalent or money market instruments.

There are also alternative asset classes, such as real estate, and valuable inventory, such as artwork, stamps and other tradable collectibles. Some analysts also refer to an investment in hedge funds, venture capital, crowdsourcing or cryptocurrencies as examples of alternative investments.