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Two Types of Selling Financial Instrument

Selling financial instrument can be divided in two types. Short term financial instrument is for 1 year and long term financial instrument for more than a year.<br>

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Two Types of Selling Financial Instrument

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  1. Selling Financial Instrument is a Investment Service Can be Traded

  2. Financial instrument is a contract between two parties. Selling financial instrument is one of the investment service can be created, traded and get modify as well. • A financial instrument is a kind of evidence or ownership between two parties. • A financial instrument gives rise to financial asset to one party and financial liability to other party.

  3. By trading we mean buying and selling financial instrument. • Selling financial instrument can be divided in two types. it can also be divided according to assets classes, which further tells either they are equity based or debt based. • Short term financial instrument is for 1 year or less and long term financial instrument last for more than a year.

  4. Financial instruments are of two types • 1. Cash instrument: Cash instrument are the instrument that market value directly. • 2. Derivative instrument:  Derivative instrument are instrument whose worth we drive directly from assets.

  5. Selling financial instrument provides economy future benefits in the form of a future cash claim. Financial instruments are exchanged or traded in financial market. Financial market provides • 1. Price discovery • 2. Liquidity • 3. Reduction of cost

  6. Financial instrument are assets that can be traded in the market as well. • They can also be traded as a package of one’s ownership or entity to other. • Financial instrument provides support for investment through loans, guarantees. They are used to perform investment in structural funds.

  7. Financial instrument is a kind of support for both the parties. • It also provide a stable framework for implementation for guarantees • The role of financial instrument in enhancing the growth and economy is very much required. But it is also a debatable issue to be concerned.

  8. Selling financial instrument is very much required for the growth of the economy. • It is very helpful for the health and efficiency of the economy. • There is a strong connection between Financial instrument and economy development and growth.

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