What Are Some Assets You Can Buy?

An asset is anything of value owned by an individual or entity that has the potential to be converted into cash. These resources represent a component of wealth, offering economic benefit to their owner. Assets can be tangible, meaning they have a physical form, or intangible, existing as a contractual claim or right.

Common Investment Securities

Financial securities represent a significant category of purchasable assets, widely accessible through various financial platforms. These typically include instruments that denote ownership or a lending relationship. Acquiring these assets often occurs through brokerage accounts, which serve as intermediaries for transactions.

Stocks represent ownership shares in a company. These shares are typically bought and sold through brokerage accounts or investment platforms, which facilitate trading on stock exchanges. Stocks are considered financial assets because their value is derived from a claim on the company’s earnings and assets.

Bonds function as a loan made by an investor to a borrower, which can be a government or a corporation. In return for this loan, the bondholder receives regular interest payments and the return of the original principal amount at a predetermined maturity date.

Mutual funds represent professionally managed portfolios that pool money from many investors to purchase a diversified collection of stocks, bonds, or other securities. Mutual funds offer a way to gain exposure to a broad range of assets within a single investment.

Exchange-Traded Funds (ETFs) are similar to mutual funds in that they hold a basket of securities. However, ETFs trade on stock exchanges throughout the day, much like individual stocks. This structure allows for a diversified exposure to various asset classes through a single transaction.

Real Property and Related Investments

Real property constitutes a distinct asset class, encompassing physical land and any structures permanently affixed to it. This category offers both direct ownership opportunities and indirect avenues for participation in the real estate market. Acquisition methods for real property differ significantly from those for financial securities, often involving more direct transactions and legal processes.

Direct real estate involves the outright purchase of physical land and any permanent structures, such as residential homes or commercial buildings. This form of ownership provides direct control over the physical asset. Transactions for direct real estate commonly involve legal professionals to ensure proper title transfer and adherence to local regulations.

Real Estate Investment Trusts (REITs) offer an alternative method to invest in real estate without directly owning physical property. REITs are companies that own, operate, or finance income-producing real estate across various property sectors. This allows investors to participate in the real estate market through a publicly traded security, providing access to diversified real estate portfolios.

Physical and Emerging Assets

Beyond traditional securities and real estate, other distinct categories of assets are available for purchase, encompassing both tangible physical items and newer digital forms. These assets often possess unique characteristics that differentiate them from more conventional investment types, including their acquisition and storage methods.

Precious metals, such as gold, silver, and platinum, are tangible assets valued for their rarity and intrinsic properties. Individuals can purchase these metals in physical forms, including coins, bars, or bullion. Alternatively, indirect exposure to precious metals can be achieved through certain investment vehicles that track their prices, though the fundamental asset remains the physical commodity.

Collectibles are items whose value is derived from attributes like rarity, aesthetic appeal, historical significance, or unique characteristics. This category includes a wide array of items, such as fine art, antiques, rare coins, or classic cars. These tangible assets are acquired through various channels, including auctions, specialized dealers, or private sales.

Digital currencies, often referred to as cryptocurrencies, are decentralized digital assets secured by cryptography. Examples include Bitcoin and Ethereum, which exist on distributed ledger technologies like blockchain. These assets are typically purchased through specialized online exchanges or directly via peer-to-peer transactions. Acquiring digital currencies involves establishing an account on such platforms and often linking a traditional bank account for funding.