PDSnet Glossary

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Definition

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<p style="text-align: justify;">Paper assets refer to financial <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">instruments</span> that represent ownership or a claim on an underlying <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">asset</span> but exist only in document form rather than as physical assets. These include <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">shares</span>, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bond</span>s, <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">mutual fund</span>s and <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">exchange traded fund</span>s.  Unlike <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">tangible assets</span> like <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">property</span> or <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">commodities</span>, paper assets derive their value from the financial system that supports them.</p>
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