Savings can be invested in a wide range of assets. Assets are items that have value and include real assets and financial assets. Real assets are physical assets, such as land, buildings, machinery, cattle, and gold. They often represent a company’s means (or factors) of production and are sometimes referred to as physical capital. In contrast, financial assets are claims on real, or possibly other financial, assets. For example, a share of stock represents ownership in a company.
This share gives its owner, who is called a shareholder, a claim to some of the company’s assets and earnings. An investor’s total holdings of financial assets is usually called a portfolio or investment portfolio.