1

The definition of equity and the definition of asset are explained in many posts and across the Internet. However, it doesn’t seem possible to me to derive the meaning of "equity assets" from them.

What is the meaning of this expression?

  • Can you give an example of how this phrase might be used? What makes you think the term is meaningful in the first place? – Mike Haskel Dec 6 '15 at 23:58
  • Searching for "equity asset" on the internet, I found many occurrences from sites that seem reliable. E.g.: this book title – toliveira Dec 8 '15 at 1:18
5

If I hold a bond then I have a debt asset. If I hold physical silver then I have a commodity asset. If I hold the stock of an individual company then I have an equity asset. Equities, commodities and debts are the three kinds of assets that a person can hold.

Edit: I forgot one other kind of asset; monetary asset. If I stuff my mattress with cash (USD) I am holding a monetary asset.

Short-term Treasury Bills really behave more like a monetary asset than a bond. So besides actual, physical, currency I would categorize T-bill as a monetary asset.

https://www.treasurydirect.gov/indiv/products/prod_tbills_glance.htm

  • Where would you classify convertible debt and derivatives? – user662852 Dec 7 '15 at 2:19
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    @user662852 - derivatives are not assets, they are essentially a contract between two parties where the price is derived from the underlying asset. – Victor Dec 7 '15 at 4:25
  • @Victor how about exchange-traded derivatives? With these derivatives they can be easily traded in and out of positions. They have a different pricing model than the underlying but I would still consider them to be assets. – Tom Sun Dec 7 '15 at 19:03
  • @Jack, with the help of your explanation, I could find the following Wikipedia article. If I understood correctly, the word "asset" has two unrelated meanings: the one that you explained and the one used in the accountability equation. Interestingly, a equity asset (first meaning) is an equity, and not an asset (second meaning). – toliveira Dec 8 '15 at 1:30
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    @TomSun - Exchange Traded Option are derivatives, traded in and out of positions on a market, and their price is determined by their underlying asset. They are not an asset but simply a contract between two parties. Futures are the same and so are CFDs (Contract For Difference). So what type of Exchange Traded Derivatives are you talking about exactly? The whole point of them being derivatives is that they derive their price from their underlying asset or commodity. – Victor Dec 8 '15 at 4:43

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