A non-financial asset is an asset that cannot be traded on the financial markets and whose value is derived by its physical net worth rather than from a contractual claim, as opposed to a

financial asset A financial asset is a non-physical asset whose value is derived from a contractual claim, such as deposit (finance), bank deposits, bond (finance), bonds, and participations in companies' share capital. Financial assets are usually more market li ...

(e.g., stock, bonds). Non-financial assets may be

tangible Tangibility is the property of being able to be perceived, especially by the sense of touch. Metaphorically, something can also be said to be "cognitively tangible" if one can easily understand it. Law In criminal law, one of the elements of ...

(also known as real assets, e.g., land, buildings, equipment, and vehicles) but also intangible (e.g., patents, intellectual property, data). Non-financial assets can be further divided into produced assets (fixed assets, inventories, and valuables) and non-produced assets (natural resources, contracts, leases and licenses, and goodwill and marketing assets). Non-financial assets can be transformed into financial assets through

securitization Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans, or credit card debt obligations (or other non-debt assets which generate receivables) and sellin ...

; the non-financing asset thus becomes an underlying asset.

References

{{finance stub Asset Investment Finance