Browse Definitions :
Definition

asset management

Contributor(s): Matthew Haughn

Asset management is a financial service offered by professional firms for the holding, transferring, buying and selling of different types of cash and investments.

Asset management is performed by asset management companies (AMC) to maximize efficiency of cash transactions and the profitability of investments. Efficiency can be attributed to experienced employees of asset management companies, their specialization in the field and the pooled resources of numerous clients. Finance follows other management trends like enterprise asset management, IT asset management and digital asset management.

Since specialized firms take care of investments, companies can have experienced investors who know companies, markets and make more effective choices. The asset management firm knows what to buy and sell and when to do it for better profitability. The firms spend effort on market analysis, studying trends, running profitability analysis and making predictions. The companies generally operate by way of transaction fees or commissions on trades.

AMCs are much like brokerage houses, except they are more able to be selective with clients and are also held to a higher standard of law. Where brokerage houses are not responsible for losses on investments as they made their best effort, an AMC may be legally liable for their management.

This was last updated in July 2019

Continue Reading About asset management

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • cybersecurity insurance (cybersecurity liability insurance)

    Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract that an entity can purchase to ...

  • phishing

    Phishing is a form of fraud in which an attacker masquerades as a reputable entity or person in email or other communication ...

  • cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

  • NVMe over Fabrics (NVMe-oF)

    NVMe over Fabrics, also known as NVMe-oF and non-volatile memory express over fabrics, is a protocol specification designed to ...

  • logical unit number (LUN)

    A logical unit number (LUN) is a unique identifier for designating an individual or collection of physical or virtual storage ...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

Close