What are financial instruments
Financial instruments are monetary contracts between parties that facilitate the transfer and management of capital. They include a variety of assets such as stocks, bonds, loans, options, and futures, each serving different purposes in investment and risk management strategies.
Types of financial instruments
Financial instruments can be categorized into several types, including equity instruments like stocks, debt instruments such as bonds and loans, and derivative instruments like options and futures. Each type offers unique characteristics, risk profiles, and potential returns, allowing family offices to tailor their investment strategies to meet specific financial goals.
