BANK OR FINANCIAL INSTRUMENTS.

BANK OR FINANCIAL INSTRUMENTS. WHAT IS A FINANCIAL INSTRUMENT? Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash, evidence of an ownership interest in an entity or a contractual right to receive or deliver in the form of currency; debt; equity; or derivatives. https://en.wikipedia.org/wiki/Financial_instrument Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world's investors. These assets can be cash, a contractual right to deliver or receive cash or another type of financial instrument, or evidence of one's ownership of an entity. https://www.investopedia.com/terms/f/financialinstrument.asp#:~:text=Investopedia%20%2F%20Madelyn%20Goodnight-,What%20Is%20a%20Financial%20Instrument%3F,all%20throughout%20the%20world's%20investors.