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Definition of 'Financial Instrument'
A real or virtual document representing a legal agreement involving some sort of monetary value. In today's financial marketplace, financial instruments can be classified generally as equity based, representing ownership of the asset, or debt based, representing a loan made by an investor to the owner of the asset. Foreign exchange instruments comprise a third, unique type of instrument. Different subcategories of each instrument type exist, such as preferred share equity and common share equity, for example.
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Investopedia explains 'Financial Instrument'
Financial instruments can be thought of as easily tradeable packages of capital, each having their own unique characteristics and structure. The wide array of financial instruments in today's marketplace allows for the efficient flow of capital amongst the world's investors.
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Forward contracts originated 150 years ago and paved the way for today''s futures contracts
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To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
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If you're new to the stock market and want the basics, this is the tutorial for you!
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If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
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Be in the know - learn about the five most talked about indexes and what makes them all different.
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Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
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