Asset
Tue, Apr 15An asset is an economic resource that can be owned or controlled to yield a profit or provide future benefits. It encompasses anything you possess that you anticipate will generate or save money in the future. Assets can be owned by individuals or organizations, representing the value of ownership that can be converted into cash.
In the context of trading, the term asset refers to items exchanged in markets, such as stocks, bonds, currencies, or commodities. These are known as “financial assets.” A financial asset is a specific type of asset that holds monetary value and can be traded in a financial market. Investors utilize financial assets to build wealth and generate income over time.
Examples of financial assets include stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, futures, and currencies. One of the primary characteristics of financial assets is their liquidity, which indicates how easily an asset can be bought or sold in a financial market without significantly impacting its price. Financial assets are generally highly liquid, allowing for quick and easy transactions with minimal costs.
Another crucial aspect of financial assets is their risk and return profile. Different financial assets carry varying levels of risk and potential returns. For instance, stocks are typically viewed as riskier than bonds, yet they also offer the possibility of higher long-term returns.
In addition to their risk and return characteristics, financial assets may have distinct tax implications. Certain financial assets, like stocks held for over a year, may qualify for long-term capital gains tax rates, which are usually lower than those for short-term capital gains. Other assets, such as municipal bonds, might be exempt from federal income tax.
Financial assets can be owned by individuals, corporations, or governments. They can be held directly, such as owning shares of a stock or bond, or indirectly, like owning shares of a mutual fund or ETF. Financial assets can also be placed in retirement accounts, such as 401(k)s or IRAs, where they can grow tax-free until retirement.
Recommendation
AAII Sentiment Survey
The American Association of Individual Investors (AAII) Sentiment Survey is a widely used tool that assists investors in gauging the overall sentiment of individual investors within the stock market. By offering insights into the market's bullish, bearish, and neutral viewpoints, the AAII Sentiment Survey serves as a valuable resource for investors seeking to comprehend market trends.
Abandoned Baby
The Abandoned Baby is a reversal Japanese candlestick pattern consisting of three candles: one doji and two candles with bodies. There is a gap both before and after the doji. The shadows of the doji must completely gap above or below the shadows of the first and third candles.
Account Statement Report
This report serves as a documentation of every transaction conducted within a trading account during a designated timeframe.
Account Value
Here is how account value is calculated:
Accumulative Swing Index (ASI)
The Accumulative Swing Index (ASI) is a technical analysis tool designed to assist traders in recognizing and measuring price trends within financial markets. Created by J. Welles Wilder Jr., the ASI computes the cumulative total of swing index values, offering a more detailed perspective on market trends.
ACH Transfer
ACH transfer is a method of payment or deposit that originates from the traditional banking sector. More specifically, it refers to an electronic payment made between bank accounts via the ACH network.
