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Financial Instruments

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.

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April 22, 2021 at 1:25 am #618475
rashard
Participant
- Topics: 17
- Replies: 32
Hi Chris/ Stephen,
Please help me understand below.
A financial asset is any asset that is a contractual right to exchange financial instruments with another entity under conditions that are potentially favourable to the entity. And this comes as potentially UNFAVOURABLE for financial liabilities.
What does these two mean?
April 22, 2021 at 1:16 pm #618513
Stephen Widberg
Keymaster
- Topics: 16
- Replies: 3416
FA – Right or obligation to swap shares worth 10 for shares worth 15 – a good thing
FL = Obligation to swap a loan liability of 10 for a loan liability of 12 – a bad thing.
That’s my best guess.
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