Syndicate
Diverse Portfolio
In general, you must try to diversify your portfolio by combining different types of assets that will generate more profitability in a long term with a much less exposure to risks.
The idea consists in combining assets that includes shares, liabilities, treasury securities, real estate securities, etc.
Attending the emitting agent:
- Public securities: do institutions of the public administration issue those. The bonds and notes of the treasury and the liabilities of the government are some examples.
- Private Securities: those securities issued by private companies. This is the case with shares, promissory business notes, promissory notes from credit institutions and the participation in investment funds.
According as how is the holder designated
- Registered shares: they are issued in favor of a determined person that is registered as the holder. If the security has to be transferred, you have to notify it to the issuing institution.
- Bearer shares: the holder is the bearer of the same
- Ordered shares: they are issued in favor of a determined person as in the case of the registered shares but these can be transferred to any other person without any expressed notification to the issuing institution. This is the case of the bills of exchange.
According to the supporting material that sustains them:
- Documental formula: If the financial assets are issued on paper. Of the securities (notation in accounts), that is the actual tendency for all the assets. They are controlled through computers.
- Actually the old securities in paper are a small part of the market and are being retired progressively.
Other classifications that could be done to the financial assets are: according to length of liquidity or also according to the type of market in which they are traded. However, in these kind of classifications we could find greater problems of delimitations, first because there exists certain difficulties in establishing the precise order for assets more related with money and second because the existing borders between markets are each time more diffuse as for their definition.
For example, in the stock exchange they usually divide the securities, according to the contracts, in five basic groups:
- Public debt of medium and long terms: bonds and liabilities of the government or other official organisms, etc.
- Short term company assets: promissory business notes, promissory notes of credit institutions, etc.
- Shares
According to the type of market, all of them are contracted in the denominated “money markets”. Well now, due to the appearance of a great variety of new financial tools such as the operations with derivative products or others, the delimitation between them and other markets is each time less clear, by which the concrete elaboration of a classification according to this criterions is difficult to realize, such as commented before.
Immediately, we will explain each of the groups of assets mentioned.