Distinguish, differentiate, compare and explain what is the Difference between Real assets and Financial assets. Comparison and Differences.
Difference between Real assets and Financial assets
1. Real assets represent tangible possessions. Financial assets represent intangible possessions.
2. Real assets have lesser liquidity. Financial assets have more liquidity, because they can be easily converted to cash.
3. Generally, real assets take more time to dispose or sell. Financial assets are easily disposable.
4. Over a period, real assets loses its value Financial assets will provide continuous growth and increased value.
5. Real assets are used to produce products and services to generate revenue. Financial assets uses income to purchase real assets that offers revenue.
6. Examples of Real assets: Machinery, and production equipment. Examples of financial assets: Stocks and bond.