Asset
Financial glossary definition
Definition
Anything of monetary value that you own, including cash, investments, real estate, vehicles, and personal property. Assets are a key component of your net worth calculation.
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Related Terms
Amortization
The process of spreading loan payments over time so that each payment covers both interest and princ…
Annual Percentage Rate (APR)
The yearly interest rate charged on a loan or earned on an investment, including fees and other cost…
Annual Percentage Yield (APY)
The effective annual rate of return on an investment or savings account, taking compound interest in…
Asset Allocation
The strategy of dividing your investment portfolio among different asset classes (stocks, bonds, rea…
Equity
The portion of an asset that you truly own — the difference between its market value and any outstan…
Liability
Any financial obligation or debt you owe, including mortgages, car loans, student loans, credit card…