Securities: includes both debt and equity securities. Securities may be further classified as public or private securities, depending on if they are traded on a public exchange.
Currencies: monies issued by national monetary authorities.
Contracts: agreements to trade other assets in the future.
Commodities: precious metals, energy products, industrial metals, and agricultural products.
Real Assets: all tangible properties, such as real estate, airplanes, airports, machinery, timberland, and pipelines.
Futures Markets/Forward Markets/Options Markets: traded contracts require delivery at some date in the future. Contracts in the options markets are only delivered if the option is exercised.
Spot Markets: traded contracts require immediate delivery.
Primary Market: funds flow from the purchaser to the issuer.
Secondary Market: funds flow between traders.
Money Markets: trades debt instruments maturing in one year or less.
Capital Markets: trades instruments maturing in over one year, such as bonds and equities. Corporations usually finance their operations through the capital markets.
Traditional Investment Markets: transactions involve only direct or indirect investments in publicly traded debts and equities.
Alternative Investment Markets: includes private markets investments, which are more difficult to trade and value. In order to compensate for the limited liquidity, investors in these markets expect to earn a greater risk-adjusted return than they would in traditional investments.
A direct investment in an industrial warehouse is an example of a:
C. Real asset
The correct answer is C.
Since the investment is in a tangible property (real estate), it would be considered a real asset.
Reading 44 LOS44b:
Describe classifications of assets and markets