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What is the difference between a financial instrument and a financial product What is the difference between a financial instrument and a financial product
Introduction: The Overlapping Terminology
Hello everyone, and welcome to today's video! When it comes to discussing finance, certain terms can be quite perplexing.
One such pair is 'financial instrument' and 'financial product.' While they may seem synonymous, they have distinct meanings. In this video, we'll demystify these terms, exploring their definitions, features, and how they're employed in the financial landscape.
Defining Financial Instruments: The Building Blocks
Let's start by understanding what a financial instrument entails. In essence, it refers to any contract or agreement that holds monetary value.
These instruments can be traded, transferred, or exchanged between parties. Examples of financial instruments include stocks, bonds, derivatives, and more.
They serve as the foundation for various financial transactions and investments.
Unraveling Financial Products: The Comprehensive Offerings
On the other hand, financial products are broader in scope. They encompass a range of instruments, services, or strategies that are designed to meet specific financial needs.
Show More Show Less #Banking
#Business Finance
#Debit & Checking Services
#Finance
#General Reference
#Investing
#Investment Banking
#Reference
#Stocks & Bonds
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