Financial Instruments
/ˈfaɪnænsəl ˈɪnstrəmənts/
Definitions
- (n.) Legal contracts that create a monetary asset for one party and a liability or equity instrument for another, including securities, loans, and derivatives.
Banks use financial instruments to manage risk and raise capital.
Forms
- financial instrument
Related terms
See also
Commentary
Financial instruments are commonly categorized as equity, debt, or derivative instruments; precise drafting should specify the instrument type due to differing legal treatments.
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.