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Financial instruments

Financial instruments

Financial instruments is a collective term for, among other things, shares, bonds, fund units and derivatives.

What are financial instruments?

Financial instruments (Swedish: finansiella instrument) is a collective term for assets traded on the financial market. They include transferable securities such as shares and bonds, as well as fund units, money market instruments and derivatives such as options and futures. The term is used in securities market regulation.

 

Financial instruments in unlisted companies

Unlisted companies can also issue financial instruments, such as shares, warrants and convertibles. Shares are entered in the share ledger, and an overview of all instruments gives a correct cap table and a basis for calculating dilution.

Learn more about cap tables
Henrik Kristensen, NVR
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Related terms

Security

A security is a document or right that gives its holder value, usually one that can be converted into money.

Share

A share is a unit of ownership in a limited company that gives the right to vote and to receive dividends.

Option

An option gives the holder the right, but not the obligation, to buy or sell an asset at a set price.

Warrant

A warrant gives the right to subscribe for new shares in a company at a set price.