Non_Marketable_Financial_Assets-Group_1-Section_A

Non_Marketable_Financial_Assets-Group_1-Section_A -...

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Click to edit Master subtitle style 5/30/11 Non-Marketable Financial Assets Presented By: Group 1, Section
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5/30/11 What is a Non-Marketable Financial Asset? A good portion of the financial assets of individuals is held in the form of non-marketable financial assets like bank deposits, post office deposits, company deposits and provident fund deposits. A distinguishing feature of these assets is that, they represent personal transactions between the investor and the issuer. For example, when you open a savings bank account with a bank, you deal with the bank personally. In contrast, when you buy equity shares in the stock market, you do not know who the seller is and you do not care. Non-marketable assets are available only to one particular investor and are often indivisible, since they require a fixed amount of investment to be undertaken. It is worth stressing that by saying “available only to one particular investor”, we mean that only that investor can directly access it and that other agents can access it only through that investor.
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5/30/11 1. Bank Deposits Perhaps the simplest of investment avenues, a bank deposit can be created by opening a bank account and depositing money in it . There are various kinds of bank accounts: current account, savings bank account and fixed deposit account. While a deposit in a current account does not earn any interest, deposit in other kinds of bank accounts earn interest. For SB account, the interest rate is 3.5% calculated on a daily basis. Features of Bank Deposits
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Non_Marketable_Financial_Assets-Group_1-Section_A -...

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