According to the GAAP (Generally Accepted Accounting Principles) used in the United States of America, “Assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.” It is a resource or property owned by anyone or entity. In Finance, assets such as stock and bond represents claims on future cash flows.  The value of an asset is given by the discounted cash flows. For example, a bond owner is expected to receive regular interest payment and the principal payment called par value at the maturity. The value of the bond today is all these cash flows discounted at the discount rate determined by the market. For a stock it is similar, its value is the cash flows (dividends) you expected to receive in the future discounted by the discount rate determined by the market.