What are the basic financial instruments?

Common financial instruments would include cash, trade debtors and interest rate swaps….Financial instruments

• cash.
• a debt instrument (such as accounts receivable and payable)
• commitment to receive a loan that satisfy certain criteria.
• investments in non-convertible preference shares, and non puttable ordinary shares.

What are financial instruments in accounting?

Generally Accepted Accounting Principles (GAAP) defines a financial instrument as cash, evidence of an ownership interest in a company or other entity, or a contract that does both of the following: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity.

What are the most common financial instruments?

Basic examples of financial instruments are cheques, bonds. stocks. Two of the most common asset classes for investments are, securities. There are typically three types of financial instruments: cash instruments, derivative instruments, and foreign exchange instruments.

What are the different types of financial instruments?

A financial instrument is a real or virtual document representing a legal agreement involving any kind of monetary value. Financial instruments may be divided into two types: cash instruments and derivative instruments.

What are the different types of investment instruments?

The two basic types of investment instruments are fixed-income and equity. Fixed-income assets provide relative safety of capital and regular interest payments, while equity provides the potential for long-term capital appreciation.

What are the different types of capital market instruments?

Capital market instruments used for market trade include stocks and bonds, treasury bills, foreign exchange, fixed deposits, debentures, etc. As they involve debts and equity securities, the instruments are also called securities, and the market is referred to as securities market.

What are the different types of capital market products?

Equity securities