Financial instrument


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Financial Instrument

Any document with monetary value. Examples include cash and cash equivalents, but also securities such as bonds and stocks which have value and may be traded in exchange for money.

Financial instrument.

A financial instrument is a physical or electronic document that has intrinsic monetary value or transfers value. For example, cash is a financial instrument, as is a check.

Listed and unlisted securities, loans, insurance policies, interests in a partnership, and precious metals are also financial instruments. A contractual obligation is also a financial instrument as is a deed that records home ownership.

References in periodicals archive ?
None of the Information constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, and MSCI does not endorse, approve or otherwise express any opinion regarding any issuer, securities, financial instruments or products or trading strategies that may be described or mentioned herein.
In 1993 and again in 1996, the Federal Reserve issued advisories concerning illegal activities claiming to involve a financial instrument issued by a "prime bank.
FAS 155 permits fair value re-measurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation.
Bullen, principal author of the Discussion Memorandum, "the definition of a financial instrument includes bonds, notes, deposits, trade accounts receivable and payable, and many insurance contracts.
For financial instruments with off-balance sheet risk, an entity is required to disclose in the body of the financial statements or in the related notes by class of financial instrument:
An uncondiitonal receivable and payable--an unqualified right or obligation to receive or deliver cash or a financial instrument (for example, a zero-coupon bond);
The Financial Accounting Standards Board has published a special report, Illustrations of Financial Instrument Disclosures, that explains the disclosure requirements in Statement no.
Some derivatives (such as futures, forward and swap contracts) have elements of traditional forward contracts, which obligate one party to buy and a counterparty to sell an underlying financial instrument, foreign currency or commodity at a future date at an agreed-on price.
For a corporation, for instance, the biggest financial instrument is debt.
A financial instrument is "mandatorily redeemable" if it requires the issuer to redeem it by transferring its assets at a specified or determinable date upon an event that is certain to occur, including the death or termination of employment of the shareholder.
Financial Instruments with similar economic effect to Qualifying Financial Instruments (xv, xvi) Resulting situation after the triggering transaction: Type of financial instrument:
It requires that an issuer classify a financial instrument that is within its scope as a liability (or an asset in some circumstances).

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