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Alternative Investment

   Also found in: Wikipedia 0.01 sec.
Alternative Investment
Any investment other than a stock, bond, or cash. Prominent examples include derivatives, hedge funds, real estate, and commodities. Most of the time, institutional investors and high net-worth individuals are the main holders of alternative investments. This is because they are subject to fewer regulations and are consequently riskier than most other investments. Alternative investments are rarely required to publish independently verifiable financial information. They also have particularly high minimum investments, which discourage casual investors. Alternative investments are controversial in many quarters. Because of the comparative lack of regulation and disclosure, they are subject to scrutiny from politicians and economic analysts. However, they often have high (sometimes very high) returns.


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9781576603109 The only guide to alternative investments you'll ever need; the good, the flawed, the bad, and the ugly.
The AICPA's Alternative Investments Task Force issued a practice aid for auditors, "Alternative Investments--Audit Considerations.
The continued increase in the percentage of alternative investments to both net assets and total investment portfolio subjects these entities to complex fair value accounting and has exposed their investment portfolios to greater risk and volatility.
 
 
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