Asset Prices  

Assets are items that give real value to a firm or an investor. Assets can be real assets such as land, houses, machines or capital. Financial assets include money, bonds and securities.

Intangible Assets: Assets can also be intangible. For example, a company may have a loyal workforce or they may have a recognisable brand. These assets cannot be easily quantified but they do offer real value to the company and help to increase its worth.

Liquid Assets – Liquid assets tend to be easily convertible into cash. e.g. a house may take several weeks to sell therefore it is considered illiquid.

The price of assets such as commodities and houses can vary due to supply and demand factors.

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