What does "real asset" mean? What is a "financial asset"?

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What does "real asset" mean?
What is a "financial asset"?



Answer: Real assets include all assets used in the production or sale of the firms' products or services. Real assets can be tangible (plant and equipment, for example) or intangible (patents or trademarks, for example). Financial assets are securities (such as shares) sold by the firm to raise money and represent claims on the firm's real assets and the cash generated by those assets.

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