What Is an Investment Instrument?

Financial investment instruments are legal documents that are generated during credit activities and can prove the amount, duration and price of financial transactions. ^[1]

Financial investment vehicle

The four attributes of financial investment vehicles are closely linked. Investors accept low for short repayment periods and higher liquidity. Risk and return are positively related, because most investors are averse to risk, so accepting high risk must have correspondingly high returns. There is an inherent connection between risk and liquidity, and financial instruments with high liquidity are less risky. ^[1-2]