A financial instrument is a tradable asset of any kind; either cash, evidence of an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.
According to IAS 32 and 39, it is defined as "any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity".
Read more about Financial Instrument: Categorization, Measuring Financial Instrument's Gain or Loss
Famous quotes containing the words financial and/or instrument:
“What people don’t realize is that intimacy has its conventions as well as ordinary social intercourse. There are three cardinal rules—don’t take somebody else’s boyfriend unless you’ve been specifically invited to do so, don’t take a drink without being asked, and keep a scrupulous accounting in financial matters.”
—W.H. (Wystan Hugh)
“We ought, says Kant, to become acquainted with the instrument, before we undertake the work for which it is to be employed; for if the instrument be insufficient, all our trouble will be spent in vain. The plausibility of this suggestion has won for it general assent and admiration.... But the examination can be only carried out by an act of knowledge. To examine this so-called instrument is the same as to know it.”
—Georg Wilhelm Friedrich Hegel (1770–1831)