Anything of value owned or is owed to it by a business, institution, or individual. Assets may include cash, investments, accounts receivable, product inventory and other current assets. Patents and goodwill are called intangible assets. The allotment of investment funds amongst various types of assets such as cash equivalents, stock, fixed-income investments, real estate, and precious metals. It also applies to sub-classifications such as industry groupings of common stocks and government, municipal, and corporate bonds.
Asset allocation affects both risk and return.
Accounts Receivable Asset Coverage Extent to which a corporation's net assets cover a specific class of preferred stock, debt obligation or equity position. Asset coverage is significant as a buffer against losses in the event of liquidation. AMAs are convenient because all financial transactions are listed on one monthly statement. A security whose current price does not reflect the value of corporate assets. For instance, analysts may recommend a corporation because its real estate value is greater than is reflected in the stock's current price and not because the corporation is run well.