Abstract
There are basically four types of financial instruments viz. a bank deposit, a bill of exchange, a bond, and equity. As a result of a steady stream of financial innovations in today’s time, the market landscape is far less sparse-and far more complex to evaluate. Financial instruments are termed as the financial products which are tradable as packages of capital, each having their own unique characteristics and structure. The wide collection of financial instruments in today's marketplace allows for the efficient flow of capital amongst the world's investors. Financial instruments are legal documents that embody monetary value. There are a number of different types of documents that are properly identified as a financial instrument. There are different types of financial instrument, like cash instruments or derivative instruments.
Highlights
There are a number of different types of documents that are properly identified as a financial instrument
The Indian financial market is divided in two parts: capital market and money market
The certificates of deposits (CD), commercial papers and federal saving bonds are negotiable instruments, which can be traded in the secondary market before the end of the whole term
Summary
The Indian financial market is divided in two parts: capital market and money market Both markets consist their own financial instrument to work out. This paper is mainly about cash instruments, one type of financial instrument available in Indian financial market. Cash instruments are financial instruments whose value is determined directly by markets They can be divided into securities, which are readily transferable, and other cash instruments such as loans and deposits, where both borrower and lender have to agree on a transfer. This type of financial instrument is those documents that are recognized as cash that can be utilized for various transactions. The maturity date, fixed rate of interest and a fixed value - are the three components of a certificate of https://www.ijmds.in/
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