Financial Instrument

 is a monetary contract between parties.

Basic Terms
1. Finance
2. Budgeting
3. Source of Funds
4. Savings
Finance
 means to provide funding, for example, in
the form of a loan or borrowed money with
the intent of collecting the money back after
a specified period of time. In this kind of
arrangement, the money that was loaned
will earn interest.
Business Finance
 is a business activity which is concerned
with the acquisition and conservation of
capital funds in meeting financial needs
and overall objectives of business
enterprises.
Financial Management
 involves the actual handling of an
organization’s funds, which covers
operational, investments, and financial
decisions.
Two Branches of Finance
1. Public Finance – covers management
of public funds, national budget, and tools
for fiscal policy such as government
expenditure and taxation.
Two Branches of Finance
2. Private Finance – may be further
categorized into personal and corporate
finance.
Financial Institution
 facilitate the flow of funds in the financial
market through the buying and selling of
financial securities.
Various Types of Financial Institution
1. Commercial Banks
2. Saving and Loans Banks
3. Investment Banks
4. Insurance Companies
5. Investment Companies
Financial Instrument
 is a monetary contract between parties.
 Financial Instrument

Equity Debt
Securities Securities
Equity Security
 is a financial instruments that represents
an ownership share in a corporation.
 it gives the holder the right to the
proportion of the earnings of the issuing
organization.
Debt Security
 refers to money borrowed that must be
repaid that has a fixed amount, maturity
dates, and usually a specific rate of
interests.