Asset Classes


The primary use of cash is as a medium of exchange. Cash is not a productive asset.


Equity refers to business ownership. The two types of equity are public and private.

Public equities trade on exchanges like the TSX and are often called stocks.

Private equity is not open to the public and does not trade on an exchange. If you owned 50% of the corner coffee shop that would be private equity.

Equity produces dividends and capital gains (the difference between sale and purchase price).


The two types of real estate are residential and commercial. 

Real estate can be purchased directly or through a real estate investment trust.

Property produces rental income and capital gains.


Bonds represent a contract for interest and principal payments. The interest payment is referred to as the coupon and the final payment of the bond is generally the same as the face value.

Bonds produce coupon payments and capital gains.


Commodities like corn, soy, gold and oil generate capital gains only.