Financial Instrument
/ˌfaɪnænʃəl ˈɪnstrəmənt/
Definitions
- (n.) A legal document representing a monetary value or contractual right, such as stocks, bonds, or derivatives.
The company issued a new financial instrument to raise capital.
- (n.) Any contract or agreement that creates a right to receive or an obligation to pay money or other financial assets.
Derivatives are complex financial instruments governed by detailed regulations.
Forms
- financial instruments
Related terms
See also
Commentary
The term broadly covers documents evidencing financial rights or obligations; clarity in drafting hinges on specifying the exact nature (e.g., debt, equity) of the instrument to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.