Financial assets are intangible assets that derive their value from a contractual claim. They include items such as stocks, bonds, and bank deposits, which can be traded or converted into cash. These assets are crucial for individuals and businesses as they represent a store of value and a means to generate income. Investing in financial assets can help individuals grow their wealth over time. By diversifying their portfolio with various types of financial assets, investors can manage risk and potentially increase returns. Understanding the different categories and their associated risks is essential for making informed investment decisions.