Northern Trust Interview Question

What are some financial instruments ?

Interview Answer

Anonymous

Mar 24, 2023

Financial instruments are tradable assets that represent a claim to future cash flows or ownership rights. Here are some examples of financial instruments: Stocks: Stocks represent ownership in a company and can be bought and sold on a stock exchange. Bonds are debt securities issued by companies or governments that pay the holder a fixed or variable interest rate. Options: Options are contracts that give the holder the right but not the obligation to buy or sell an underlying asset at a specific price within a certain period of time. Futures: Futures are contracts that require the parties to buy or sell an underlying asset at a predetermined price and date in the future.

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