Meaning of instruments of business finance
Economics SSS 1 Third Term
WEEK 9
Meaning of instruments of business finance
Performance Objectives
Student should be able to:
- Identify and explain the instruments of business finance.
Content
Meaning of instruments of business finance
A Financial Instrument is usually classed as a document (although they may come in other formats, such as verbal agreements) that has a direct monetary value or the power to create monetary value at a later date, through a contract that agrees on the payment of money to another party. Documents like cheques, bonds and shares are not a form of currency, but they do have a monetary value and are therefore financial instruments, or representations of worth.
More specifically 'Financing Instruments' are…