Financial asset and Mutual fund: Difference between pages

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''Financial markets.''
A pool of capital provided by small as well as institutional investors and invested in a portfolio of securities.
 
A financial asset is an asset whose value is dependent on the obligation of another person or entity.
 
 
IAS 32 defines a financial asset as an asset that is <u>any of</u> the following:
 
 
:'''1.''' Cash; <u>or</u>
 
 
:'''2.''' An equity instrument of another entity; <u>or</u>
 
 
:'''3.''' A contractual right to:
:*Receive cash or another financial asset from another entity; <u>or</u>
:*Exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the reporting entity; <u>or</u>
 
 
:'''4.''' A contract that will or may be settled in the reporting entity's own equity instruments and is <u>either</u>:
:*A non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments; <u>or</u>
:*A derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity's own equity instruments.


There are two types of mutual funds: open-ended and close-ended mutual funds.  While close-ended mutual funds have a predetermined amount of capital to be invested, open-ended mutual funds do not.


== See also ==
== See also ==
* [[Amortised cost]]
* [[Assets]]
* [[Capital]]
* [[Capital]]
* [[Capital instrument]]
* [[Domestic fund]]
* [[Capital market]]
* [[Global fund]]
* [[Entity]]
* [[Equity instrument]]
* [[Financial instrument]]
* [[Financial liability]]
* [[Financial markets]]
* [[IAS 32]]
* [[Money market]]
* [[Primary market]]
* [[Reporting entity]]
* [[Secondary market]]


[[Category:Accounting,_tax_and_regulation]]

Revision as of 14:20, 23 October 2012

A pool of capital provided by small as well as institutional investors and invested in a portfolio of securities.

There are two types of mutual funds: open-ended and close-ended mutual funds. While close-ended mutual funds have a predetermined amount of capital to be invested, open-ended mutual funds do not.

See also