Holdings - is ... Meaning and Essence

Where companies have taken assets?Why they are sometimes called assets?This is a mistake, or between those terms there any difference?What is the meaning of the word "assets"?


Anyone who knows a little French, to say that avoir - a verb that means "to own, to possess."In general, it is quite captures the essence of assets in the broadest sense - is money in any form, as well as property, through which can be redeemed liability of the owner.More often, the term is used to refer to bank finance, which are kept abroad in foreign currency, but it may equally apply to an individual.

Where did they come from?Like any asset, they need to earn or invest.If the starting capital allows you (or the law requires), the holdings have to be created immediately.But it is better to increase the turnover by temporarily donating reserves.


Holdings - is not only "live" money, but also, for example, letters of credit, bills of exchange, checks, precious metals and so on. D. They are distinguished by different liquidity and, depending on this, the company chooses, whatis the composition and the size of its assets in a certain period of time.

In this sense, monetary assets - not a tautology, since it can be called the most readily available source of funds - cash or non-cash money.They are distinguished by the highest liquidity, which means that the first will be used to repay debt.

All other assets - securities, promissory notes, letters of credit, checks, transfers, and any short- or long-term investments, and so on. D., Although it can serve as a source of funds, but their implementation takes time.So they are less liquidity and therefore not valued.

There are different types of assets:

  • free;
  • blocked;
  • particular mode of use;
  • operating (for current payments);
  • insurance (reserve);
  • investment;
  • compensation.

course, they have different purposes, they are different forms, but in general holdings - it is all of the above.


As is clear from the definition of this concept, assets - are the means which are intended to meet obligations of the owner.In addition, with the help of their economic activity is conducted, because in fact they are assets that allow the company to stay afloat and even make a profit.

If we talk specifically about bank holdings, they are used for international operations and transactions.In addition, they can serve as a kind of "cushion" in the event that the financial institution will have any problems, that is, roughly speaking, is a kind of piggy.That is why rational and correct placement of bank assets - one of the most important and serious issues of governance of the institutions.

What is the difference of the term of the assets?Perhaps it has already faded.If earlier it was possible with a reasonable degree of certainty that the holdings - a term that is used exclusively in the banking environment, but now it is not.This word can designate means any natural or legal person, as well as the whole state.So, in fact, the difference in these terms is not.


holdings are potentially powerful tool of influence on their owner.The fact is that when it comes to foreign assets, it is clear that it is subject to the laws of the state where taken.And in some cases, the account can be locked so that the owner can not dispose of the funds to them.This may be true in times of war, economic blockades and other conflicts.In addition, a partial blocking of assets can help in countering the export of capital from the country.