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Compound Financial Instrument
A financial instrument that has both a debt and equity component and may be convertible into shares of the issuing company.
Derivative Financial Instrument
is a financial contract whose value is based on the performance of underlying assets, indices, or interest rates, used for speculation, hedging, or risk management.
Option
A financial instrument that gives the holder the right to buy or sell a certain number of shares or debentures in a company by a specified date at a stipulated price.
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