Financial Instruments

Definition:

1. It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term; or
2. On initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent pattern of short-term profit taking; or
3. It is a derivative.

Derivatives

Definition:

1. Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit index etc.;
2. It requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and
3. It is settled at future date.

• Accumulator
• Call and Put Option
• Convertible Bond
• Convertible Preference Share
• Derivative Contract
• Equity-Linked Investment
• Financial Guarantee
• Forward / Futures Contract
• Share / Share Option
• Structured Product
• Swap Contract
• Warrant