What are financial instruments?
An example of an AI chatbot conversation about financial instruments.
What are financial instruments?
Financial instruments are contracts that represent an asset to one party and a liability to another. They can be traded.
Can you give me examples of different types of financial instruments?
Sure! Common types include stocks, bonds, derivatives, and currencies.
How do stocks differ from bonds?
Stocks represent ownership in a company, while bonds are loans made to a company or government that pay interest.
What are derivatives and how do they work?
Derivatives are financial contracts whose value is derived from an underlying asset, like stocks or commodities.
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