An Instrument is a device or set of rules that allows an investor to transfer value, such as buying and selling stock, bonds or other investments. An instrument may be used in a specific investment. The term "instrument" is often used to describe the financial instruments that allow investors to participate in an investment. These instruments include stocks, bonds, options and commodities.An instrument is an implement with which to store or transfer value or financial obligations. A financial instrument is a tradable or negotiable asset, security, or contract. Instruments may also be named after the institution that holds them. In the financial industry, instruments are classified according to their type and function. They are often referred to as investment products. Instruments typically have a stated maturity date.Instrument is a non-physical good which can be used to store value or transfer money. It can also be used to invest in or to borrow money. Instruments are wealth or commodity stores that are not physical. Instruments can be anything from stocks, bonds, and futures to contracts such as options and futures.
