Financial Instrument
What are financial instruments? Generally, financial instruments refer to things like cash, precious metals (gold, silver, etc.), documents that confirm ownership over something (e.g., businesses or resources), or rights to deliver or receive cash. Financial instruments can be really complex, but the basic idea is that whatever they are or whatever they represent, they can be traded. They can be classified depending on their type. One of the classifications is based on whether they are cash instruments or derivative instruments. As the name would suggest, derivative instruments derive their value from something else (like a barrel of oil). Financial instruments may also be classified as debt-based or equity-based. But where do cryptocurrencies fall? We could think of them in multiple ways, and they could fit into more than one category. The simplest ...
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