These are known as financial instruments. Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver cash (for example, Accounts Receivable and Accounts Payable).

1. Stocks: These are financial instruments that represent ownership in a company or corporation, also known as equity securities. When you buy a company's stock, you become a partial owner of that company. Stocks are typically bought and sold on exchanges (like the New York Stock Exchange or the NASDAQ) and the price can fluctuate based on a variety of factors.

2. Bonds: These are debt securities, similar to an IOU. When you purchase a bond, you are lending money to the issuer (which could be a government, municipality, or corporation) in exchange for periodic interest payments and the return of the bond's face value when it matures. Bonds are typically used by companies, municipalities, states, and sovereign governments to finance projects and operations.

Both stocks and bonds can be bought and sold on the secondary market after they are issued.

Question

These are known as financial instruments. Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver cash (for example, Accounts Receivable and Accounts Payable).

1. Stocks: These are financial instruments that represent ownership in a company or corporation, also known as equity securities. When you buy a company's stock, you become a partial owner of that company. Stocks are typically bought and sold on exchanges (like the New York Stock Exchange or the NASDAQ) and the price can fluctuate based on a variety of factors.

2. Bonds: These are debt securities, similar to an IOU. When you purchase a bond, you are lending money to the issuer (which could be a government, municipality, or corporation) in exchange for periodic interest payments and the return of the bond's face value when it matures. Bonds are typically used by companies, municipalities, states, and sovereign governments to finance projects and operations.

Both stocks and bonds can be bought and sold on the secondary market after they are issued.

Knowee AI · Accepted Answer

These are known as financial instruments. Financial instruments are monetary contracts between parties. They can be created, traded, modified and settled. They can be cash (currency), evidence of an ownership interest in an entity or a contractual right to receive or deliver cash (for example, Accounts Receivable and Accounts Payable).

1. Stocks: These are financial instruments that represent ownership in a company or corporation, also known as equity securities. When you buy a company's stock, you become a partial owner of that company. Stocks are typically bought and sold on exchanges (like the New York Stock Exchange or the NASDAQ) and the price can fluctuate based on a variety of factors.

2. Bonds: These are debt securities, similar to an IOU. When you purchase a bond, you are lending money to the issuer (which could be a government, municipality, or corporation) in exchange for periodic interest payments and the return of the bond's face value when it matures. Bonds are typically used by companies, municipalities, states, and sovereign governments to finance projects and operations.

Both stocks and bonds can be bought and sold on the secondary market after they are issued.

Instruments that represent financial claims like ownership (stocks) or creditor relationships (bonds).

Question

Instruments that represent financial claims like ownership (stocks) or creditor relationships (bonds).

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