Financial Instrument Definition
Financial instrument by asset class. We can also categorize financial instruments by asset class, depending on whether they are debt or equity based. Debt-based financial instruments reflect a loan the investor made to the issuing entity. Equity-based financial instruments, on the other hand, reflect ownership of the issuing entity. P. Walton, in Handbook of Key Global Financial Markets, Institutions, and Infrastructure, 2013. Fair value and financial instruments. The most significant case of type (a) assets is, of course, that of financial financial instrument is an asset or liability that gives a right to receive or an obligation to pay cash.
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