INSTRUMENTS OF BUSINESS FINANCE

INSTRUMENTS OF BUSINESS FINANCE, Instrument of business finance also called Financial Instrument are a physical or electronic document that has intrinsic monetary value or transfer value. An instrument is a means by which something of value is transferred, held, or accomplished. In the field of finance, an instrument is a tradable asset, or a negotiable item, such as a security, commodity, derivative, or index, or any item that underlies a derivative.

EXAMPLES OF INSTRUMENTS OF BUSINESS FINANCE,

Individual stocks Bonds. Exchange traded funds, Mutual funds and index mutual funds. Certificates of deposits, Real estate investment trusts

Financial instruments may be divided into two types: cash instruments and derivative instruments. INSTRUMENTS OF BUSINESS FINANCE

Cash Instruments.

Derivative Instruments.

Debt-Based Financial Instruments.

Equity-Based Financial Instruments.

For example, cash is a financial instrument.

Listed and unlisted, loans, insurance policies, interest in a partnership, and precious metals are also financial instruments.

A contractual obligation is also a financial instrument as a deed that records home ownership.

INSTRUMENTS OF BUSINESS FINANCE

We can divided sources of finances according to the value of finance required in three categories:

https://www.quora.com/What-are-the-basic-instruments-for-business-finance

A-Very High Value of Finance Required: government expenditure

1- Share Capital Issuance at Stock Exchanges

2-Debentures / Bonds Issuance at Stock Exchanges

3-Long Term Loan from Banks (Note: for new business State Banks of every country offer long term loans at subsidized markup rates & on easy terms)

4-Private Financing (also known as Private Placements of shares/debentures)

B-Medium Value of Finance Required: INSTRUMENTS OF BUSINESS FINANCE

1-Long Term/Short Term Loans from Banks (Note: for new business State Banks of every country offer long term loans at subsidized markup rates & on easy terms)

159. TAPE WORM
160. ROUND WORM OF PIGS
161. LIVER FLUKE
162. ECTO PARASITES
163. TICK
check out these recent posts

  1. loans for businesses
  2. how to establish enterprises
  3. what is a firm
  4. price equilibrium
  5. scale of preference
  6. concept of economics
  7. economic tools for nation building

let us know what you think

This site uses Akismet to reduce spam. Learn how your comment data is processed.