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 ?
Financial Instrument Global Identifier (FIGI) has been adopted by Deutsche Bank to identify syndicated loans that sit in collateralized loan obligations (CLOs) and other credit based structures.
The provisions of the Law apply to any qualified financial instrument, netting agreement or collateral arrangement (including any title transfer collateral arrangement) which is governed by DIFC law or which is entered into by a person incorporated or registered in the DIFC, irrespective of the date on which such qualified financial instrument, netting agreement or collateral arrangement was entered into.
The proposals form part of the IASB's review of financial instrument accounting which the IASB believes will significantly reduce complexity and make it easier for investors to understand financial statements, address how financial instruments are classified and measured.
Turning back to the subprime crisis, there is a clear parallel in how a simple financial transaction such as a mortgage has been built into a multi-tiered financial instrument with multiple investment opportunities and widely varying returns.
The value of a financial instrument may, in some cases, be coupled with an intangible value.
THE use of derivatives as a financial instrument in Ireland has doubled in the past two years to over EUR10bn, according to the Central Bank.
Statement 150 affects the issuer's accounting for various types of freestanding financial instruments. It does not apply to features embedded in a financial instrument that is not a derivative in its entirety.
The Financial Instrument, as provided for in Protocol 31 (Article 19 and Appendix 4)(1) will make EUR 119.6 million available over five years.
Fair value of a financial instrument would be its estimated market exit price.
Today, "high yield" bonds are an extremely common form of financing--so much so that they've become pretty boring as a financial instrument. The Wall Street smart guys have moved onto more exotic instruments.
119, the Board considers a derivative financial instrument as a future, forward, swap or option contract or other financial instrument with similar characteristics of options.

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