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

  • Port Scan

    A port scan is a series of messages sent by someone attempting to break into a computer to learn which computer network services ...

  • DMZ (networking)

    In computer networks, a DMZ (demilitarized zone), also sometimes known as a perimeter network or a screened subnetwork, is a ...

  • quantum supremacy

    Quantum supremacy is the experimental demonstration of a quantum computer's dominance and advantage over classic computers by ...

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

Close