2nd October 2019

investopedia
12

What is a primary financial instrument?

A primary instrument is a financial investment whose price is based directly on its market value. Examples of primary instruments include stocks, bonds and currency. By contrast, the price of derivative instruments, such as options and futures, are often based on the value of a primary instrument.

Then, what is a primary asset?

Primary assets are the assets that should be imported first to import certain other kind of assets. Primary assets act as the default scope to import the other asset types. The assets that are imported after the primary assets are the secondary assets. Primary assets constitute the super-set of the secondary assets.

How instruments are classified?

Their scheme is widely used today, and is most often known as the Hornbostel-Sachs system (or the Sachs-Hornbostel system). The original Sachs-Hornbostel system classified instruments into four main groups: idiophones, such as the xylophone, which produce sound by vibrating themselves.

What is the difference between absolute and secondary instrument?

Secondary Instruments: Definition: They are defined as the instruments that give a ready measure of the quantities with the help of graduated scales. The value of the electrical quantity to be measured is determined from the deflection of these instruments. With an absolute instrument these instruments are calibrated.
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