Instruments of Capital Markets
Types of Capital Market Instruments:
• Equities:
Represent ownership in a company. Examples include common stock and preferred stock.
• Debt Instruments:
Represent borrowing and include bonds and debentures. Bonds can be issued by governments or corporations, while debentures are generally unsecured debt.
• Derivatives:
Contracts whose value is derived from an underlying asset. Examples include futures, options, and swaps.