What are features of financial instruments?

What are features of financial instruments?

Financial instruments normally provide returns in the form of dividends (shares and units in securities funds) or interest (interest-bearing instruments). The price of the instrument may also increase or decrease in relation to the price paid when the investment was made.

Which of the following is a financial instrument?

Most financial instruments fall into one or more of the following five categories: money market instruments, debt securities, equity securities, derivative instruments, and foreign exchange instruments.

What are financial instruments in balance sheet?

Financial instruments refer to a contract that generates a financial asset to one of the parties involved, and an equity instrument or financial liability to the other entity.

What are debt financial instruments?

Debt instruments are tools an individual, government entity, or business entity can utilize for the purpose of obtaining capital. Debt instruments provide capital to an entity that promises to repay the capital over time. Credit cards, credit lines, loans, and bonds can all be types of debt instruments.

What are the innovative financial instruments?

Innovative financial instruments are a range of activities such as : participation in equity (risk capital) funds. guarantees to local banks lending to a large number of final beneficiaries, for instance small and medium-sized enterprises (SMEs)

Are all financial instruments securities?

Securities are fungible and tradable financial instruments used to raise capital in public and private markets. There are primarily three types of securities: equity—which provides ownership rights to holders; debt—essentially loans repaid with periodic payments; and hybrids—which combine aspects of debt and equity.

What are the different types of financial statements?

There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity. Balance sheets show what a company owns and what it owes at a fixed point in time.