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LSDefine
Simple English definitions for legal terms
real asset
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A quick definition of real asset:
A real asset is something that someone owns and has value. It can be something physical like a piece of land or a building, or something like a patent or trademark. Real assets can be used to produce goods or services, or they can be sold for money. They are different from financial assets like stocks or bonds, which represent ownership in a company or debt owed by a company. Real assets are important for individuals and businesses because they can help generate income and build wealth over time.
A more thorough explanation:
A real asset is an item that has value and is owned by an individual or organization. It can include cash, inventory, equipment, real estate, accounts receivable, and goodwill. Real assets are different from financial assets, which are intangible and can be easily traded in the market.
Examples:
- A piece of land owned by a real estate company
- A factory owned by a manufacturing company
- A fleet of trucks owned by a transportation company
These examples illustrate how real assets are tangible and have value that can be used to generate income or profits for the owner. They are also typically long-term assets that are not easily traded in the market.