Asked by Alvin P. Davis on Jul 05, 2024
Verified
Financial assets are valuable because they give owners rights to future cash flows.
Financial Assets
Assets such as stocks, bonds, bank deposits, or any other instrument that derives value because of a contractual right or ownership claim.
Future Cash Flows
The estimated amount of money to be received or paid out over a specified future period by an investment or business operation.
- Acknowledge the elements and operation of financial markets and securities.
Verified Answer
HH
Hannah HickeyJul 10, 2024
Final Answer :
True
Explanation :
Financial assets such as stocks, bonds, and derivatives give their owners the right to future cash flows in the form of dividends, interest payments, and capital gains. This makes them valuable as they provide a concept of future income to the owner.
Learning Objectives
- Acknowledge the elements and operation of financial markets and securities.