Physical Asset

An item of economic, commercial or exchange value that has a tangible or material existence. For most businesses, physical assets usually refer to cash, equipment, inventory and properties owned by the business. Physical assets are the opposite of intangible assets, which are non-physical assets such as leases, computer programs or agreements.

Usually, this term refers to things that may be liquidated from a business in the event of default in order to pay off debts. For example, physical assets found in a restaurant, for example, are chairs, tables, refrigerators and food. Although some physical assets can be inventoried or stored, they may go through depletion, depreciation, deterioration or shrinkage in the storage process.


Investment dictionary. . 2012.

Look at other dictionaries:

  • physical asset — Fin an asset that has a physical embodiment, as opposed to cash or securities …   The ultimate business dictionary

  • physical asset — Actual property such as precious metals or real estate. Also called real or tangible assets. Bloomberg Financial Dictionary …   Financial and business terms

  • Asset management — Asset management, broadly defined, refers to any system whereby things that are of value to an entity or group are monitored and maintained. It may apply to both tangible assets and to intangible concepts such as intellectual property and… …   Wikipedia

  • Asset specificity — is a term related to the inter party relationships of a transaction. It has been extensively studied in a variety of management and economics areas such as marketing, accounting, organizational behavior and management information systems.… …   Wikipedia

  • Physical Option — An option that is based on a physical asset. Physical options give the owner the right to buy or sell physical assets at a predetermined price and date. They are called physical because they are based on assets such as currencies, Treasury debts… …   Investment dictionary

  • physical delivery — settlement of a contract by the delivery or receipt of a financial instrument ( instruments) or commodity. Contrast with cash settlement, where no delivery of an underlying physical asset takes place. Dresdner Kleinwort Wasserstein financial… …   Financial and business terms

  • asset — as·set / a ˌset, sət/ n [back formation from assets, singular, sufficient property to pay debts and legacies, from Anglo French asetz, from Old French asez enough] 1: the entire property of a person, business organization, or estate that is… …   Law dictionary

  • Asset management (disambiguation) — Asset Management can refer to: *Financial Asset Management: **Investment management the sector of the financial services industry that manages collective investment schemes. **Global assets under management **List of asset management firms… …   Wikipedia

  • physical settlement — Settlement occurs when a financial instrument reaches maturity or expires. A financial instrument is physically settled if the underlying asset is delivered or transferred to the counterparty in exchange for a specified payment. For example, if… …   Law dictionary

  • asset — Fowler (1926) called this a ‘false form’, meaning that the true form was assets, derived from a late Anglo French word which came in turn from Latin ad satis meaning ‘to sufficiency’, while asset was the lazy writer s alternative when unwilling… …   Modern English usage

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.