Two Types of Selling Financial Instrument - PowerPoint PPT Presentation

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Two Types of Selling Financial Instrument

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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. – PowerPoint PPT presentation

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Title: Two Types of Selling Financial Instrument


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.

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4
  • 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.

5
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.

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  • 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

8
  • Financial instrument are assets that can be
    traded in the market as well.
  • They can also be traded as a package of ones
    ownership or entity to other.
  • Financial instrument provides support for
    investment through loans, guarantees. They are
    used to perform investment in structural funds.

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  • 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.

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12
  • 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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