A Financial Asset is any asset that derives its value from a contractual or investment-related claim. Common examples of financial assets include stocks, which represent ownership in a corporation; bonds, which offer fixed interest payments with principal repayment at maturity; and cash or cash equivalents, which maintain a stable nominal value and are highly liquid. They can also extend to more complex instruments like derivatives, such as options or futures, which are based on the value of an underlying asset like commodities or stock indices.\n\nFinancial assets are critical in personal and corporate finance. For an individual investor, having a diversified portfolio of financial assets helps mitigate risk while aiming for growth or income. For a company, financial assets might be part of its balance sheet in forms like accounts receivable, marketable securities, or investments in subsidiaries. For example, stating "My portfolio consists of long-term financial assets like government bonds for safety and equity mutual funds for growth" illustrates their function in financial planning. Understanding these assets contributes to effective wealth management and financial planning.