A financial instrument is a physical or electronic document that has intrinsic monetary value or transfers value. For example, cash is a financial instrument, as is a check.
Listed and unlisted securities, loans, insurance policies, interests in a partnership, and precious metals are also financial instruments. A contractual obligation is also a financial instrument as is a deed that records home ownership.
- Browse Related Terms: Alteration, Draft, Escrow agent, Financial instrument, Forgery, Negotiable, Power of attorney, Return Item, Uniform Commercial Code (UCC)