A liability is anything that an individual or organization owes to someone else. Liabilities can be salaries owed to employees, dividends owed to shareholders, taxes owed to the government, fixed or long-term debt such as bonds (which must be repaid with interest to the holder) or bank loans (which must be repaid with interest to the bank). Liabilities are the opposite of assets.
Posts Tagged ‘asset’
A Liability is…
Wednesday, October 6th, 2010A Financial Instrument is…
Tuesday, July 7th, 2009A financial instrument is a general term for any financial asset that can be bought and traded. Stocks, bonds, treasury notes, options, derivatives, and equity shares are all forms of financial instruments.
An Asset Class is…
Thursday, July 2nd, 2009An asset class is a category used to differentiate types of assets. For example, equities, fixed income, alternative assets, and FX and commodities are all asset classes – they’re instruments of value, but each has its own unique properties.
Equity is…
Wednesday, June 10th, 2009Equity is Wall Street talk for “stock.” It can also refer to the value of things or properties you own outright. For example, you own equity in your new bike, your recently purchased car, or your developing intellect when you go to school.
An Asset is…
Wednesday, June 10th, 2009An asset is any item of economic value owned by either an individual or a corporation. For example, an asset could be money in your wallet, a car, kitchen equipment in a restaurant, or a patent on a really cool new hover board.