Instrument

1) A tradeable asset or negotiable item such as a security, commodity, derivative or index, or any item that underlies a derivative. An instrument is a means by which something of value is transferred, held or accomplished.

2) An economic variable that can be controlled or altered by government policymakers in to cause a desired effect in other economic indicators.

3) A legal document such as a contract, will or deed.

1) Basically, any asset purchased by an investor can be considered a financial instrument. Antique furniture, wheat and corporate bonds are all equally considered investing instruments; they can all be bought and sold as things that hold and produce value. Instruments can be debt or equity, representing a share of liability (a future repayment of debt) or ownership.

2) Commonly, policymakers and central banks adjust economic instruments such as interest rates to achieve and maintain desired levels of other economic indicators such as inflation or unemployment rates.

3) Some examples of legal instruments include insurance contracts, debt covenants, purchase agreements or mortgages. These documents lay out the parties involved, triggering events and terms of the contract, communicating the intended purpose and scope.


Investment dictionary. . 2012.

Synonyms:

Look at other dictionaries:

  • instrument — [ ɛ̃strymɑ̃ ] n. m. • 1365; estrument v. 1119; lat. instrumentum « ce qui sert à équiper », de instruere → instruire I ♦ 1 ♦ Objet fabriqué servant à exécuter qqch., à faire une opération. REM. Instrument est plus général et moins concret que… …   Encyclopédie Universelle

  • instrument — in·stru·ment n 1: a means or implement by which something is achieved, performed, or furthered an instrument of crime 2: a document (as a deed, will, bond, note, certificate of deposit, insurance policy, warrant, or writ) evidencing rights or… …   Law dictionary

  • instrument — INSTRUMÉNT, instrumente, s.n. 1. Unealtă, aparat cu ajutorul căruia se efectuează o anumită operaţie. ♦ Aparat construit pentru a produce sunete muzicale. 2. fig. Persoană, forţă, lucru, fapt de care se serveşte cineva pentru atingerea unui scop …   Dicționar Român

  • instrument — INSTRUMENT. s. m. Outil, ce qui sert à l ouvrier, à l artisan pour faire manuellement quelque chose. Bon instrument. instrument necessaire. instrument de Chirurgie. instruments de Charpentier, de Maçon &c. un ouvrier fourni de tous ses… …   Dictionnaire de l'Académie française

  • Instrument — may refer to:* Instrument (film) * Instruments (band), a Canadian recording ensemble * Instruments (application), a performance visualizer;Types of instruments * Musical instrument, a device designed to produce music * Financial instrument, a… …   Wikipedia

  • Instrument — Instrument, und teils analog der Sammelbegriff Instrumentarium, steht: allgemein, im technischen und übertragenen Sinne, für ein Werkzeug für Musikinstrument, ein Gerät zur Erzeugung von Klängen für anzeigende Messgeräte, siehe Anzeige (Technik)… …   Deutsch Wikipedia

  • Instrument — Sn std. (16. Jh.) Entlehnung. Entlehnt aus l. īnstrūmentum Gerät, Urkunde , Konkretum zu l. īnstrūere herrichten, ausrüsten , mit übertragener Bedeutung unterrichten (instruieren). Adjektiv: instrumental; Kollektivum: Instrumentarium.    Ebenso… …   Etymologisches Wörterbuch der deutschen sprache

  • Instrument — In stru*ment, n. [F. instrument, L. instrumentum. See {Instruct}.] [1913 Webster] 1. That by means of which any work is performed, or result is effected; a tool; a utensil; an implement; a device; as, the instruments of a mechanic; astronomical… …   The Collaborative International Dictionary of English

  • instrument — (n.) late 13c., musical instrument, from O.Fr. instrument means, device; musical instrument (14c., earlier estrument, 13c.) and directly from L. instrumentem a tool, apparatus, furniture, dress, document, from instruere arrange, furnish (see… …   Etymology dictionary

  • Instrument — In stru*ment, v. t. 1. To perform upon an instrument; to prepare for an instrument; as, a sonata instrumented for orchestra. [1913 Webster] 2. To furnish or equip with instruments; to attach instruments to; as, the fighter planes were heavily… …   The Collaborative International Dictionary of English

  • instrument — instrùment m <G mn nātā> DEFINICIJA 1. a. pomagalo i oruđe za rad u laboratoriju ili u ordinaciji b. sprava za mjerenje, snimanje, pokazivanje određenih vrijednosti, posebno kao dio kontrolnog sustava [svi su instrumenti u avionu otkazali]… …   Hrvatski jezični portal

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.