Financial Instrument

A financial instrument is a contract that grants its holder financial rights. This category includes, for example, shares, bonds, fund units and derivative products such as futures and options.

Financial instruments are governed by specific regulations, and their offer, trading and management are reserved for authorised entities. The category is distinct from that of crypto-assets, which are instead governed by Regulation (EU) 2023/1114 (MiCAR).

Some instruments, such as tokens that incorporate rights typical of financial instruments, may fall under the rules on financial instruments rather than those on crypto-assets: the classification depends on the instrument’s concrete characteristics.

Disclaimer: Young Platform does not offer the financial instruments described in this entry. For details on the services actually provided by Young Platform, please refer to the General Terms and Conditions.

Correlated words

Indicator

An indicator is a technical-analysis tool that processes historical price or volume data to describe a market's past behaviour.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Bonds

Bonds are debt securities through which an issuer raises capital, committing to repay it together with a form of remuneration.

Deficit

A deficit is the situation in which, over a given period, outflows exceed inflows, resulting in a negative balance or shortfall.

Default

A default is a debtor's failure to meet the payment obligations arising from a debt or a financial instrument such as a bond.

CPI

The Consumer Price Index (CPI) is the principal measure used to track inflation, reflecting the average price change over time.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Capital gain

Capital gain is the profit earned from selling an asset at a higher price than its purchase cost, commonly realised in stock markets.

Commercial Bank

Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.

Central Bank

The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.