| Financial Instrument |
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| CATEGORIES ABOUT FINANCIAL INSTRUMENT | |
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CATEGORIZATION Financial instruments can be categorised by form depending on whether they are cash instruments or '''derivative instruments''':
Alternatively, financial instruments can be categorized by "asset class" depending on whether they are equity based (reflecting Ownership of the issuing entity) or '''debt''' based (reflecting a loan the investor has made to the issuing entity). If it is debt, it can be further categorised into '''short term''' (less than one year) or '''long term'''. Foreign Exchange instruments and transactions are neither debt nor equity based and belong in their own category. Matrix Table Combining the above methods for categorisation, the main instruments can be organized into a matrix as follows: Some instruments defy categorisation into the above matrix, for example Repurchase Agreement s. Measuring Financial Instrument's Gain or Loss The table below shows how to measure a financial instrument's gain or loss: SEE ALSO |
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