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Home > QFINANCE Dictionary > Definition of financial instrument

Definition of

financial instrument

Stockholding & Investments

contract that is evidence of financial transaction any contract that gives rise to both a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments include both primary financial instruments such as bonds, currency, and stocks, and derivative financial instruments, whose value derives from the underlying assets.

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Definitions of ’financial instrument’ and meaning of ’financial instrument’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’financial instrument’ and other financial terms with our online QFINANCE Financial Dictionary.

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