Glossary

Alternative finance

Alternative finance

DEFINITION OF 'Alternative finance'

Alternative finance is the term coined to represent forms of finance that stretch beyond the three traditional asset types (stocks, bonds and cash).

As a result of the complex nature, limited regulations, and lack of liquidity, investors in alternative finance have until recently been limited to institutional investors or accredited, high-net-worth individuals. As technology has worked to demystify the industry, new forms of alternative finance have begun opening the door to more investors having access.

Traditional forms of alternative finance include hedge funds, managed futures, real estate, commodities, derivatives, and angel investments.

There are numerous examples of alternative finance, some of which can be found here

 


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