financial instrument

Monetary asset vehicle

A financial instrument is any contract that creates a financial asset for one party and a financial liability for another.

The term covers a broad range: stocks, bonds, loans, derivatives, currencies, and insurance policies all qualify.

The portfolio contained a mix of financial instruments with varying risk profiles.

In legal and regulatory contexts, the phrase often signals formal treatment of otherwise ordinary transactions.

derivative

futures

Contracts for future delivery

hedging · contract · margin · expiration · settlement · clearinghouse · strike price · premium · call · put

debt

bond

Binding tie or connection

note · credit · treasury · bill · certificate of deposit · fixed income · coupon · maturity · yield · interest rate

fund

mutual fund

Pooled, managed investment vehicle

hedge fund · money market fund · pension fund · annuity · NAV · net asset value · load · prospectus · fund manager · unit trust

equity

stock

Goods kept for sale

dividend · ownership · shareholder · IPO · initial public offering · private equity · venture capital · capital gain · voting rights · equity stake

trading

broker

Transaction intermediary for hire

  • exchangeMutual giving and receiving
  • bidOffer to purchase
  • askSeek an answer

spread · liquidity · order · execution · clearing · settlement · market maker · volume · day trading · limit order

portfolio

asset allocation

Distributing investments strategically

risk · growth · income · rebalancing · benchmark · performance · principal · time horizon · risk tolerance · asset class

currency

forex

Currency trading market

yen · pound · yuan · franc · central bank · devaluation · appreciation · reserve currency · peg · floating rate

Opposites
tangibility of value storage

financial instrumentspecie

Money in metal form

bullion · real property · hard cash · cash · cash money

economic sophistication

financial instrumentbarter

Direct goods-for-goods exchange

direct exchange · commodity exchange · gift economy · subsistence economy · handshake deal

market formalization

financial instrumentpersonal loan

Unsecured individual borrowing

Family

finance, instrument, finances, financial, financing, instruments, financed, instrumental, financially

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G