Meaning: Financial products refer to instruments that help you save, invest, get insurance or get a mortgage. These are issued by various banks, financial institutions, stock brokerages, insurance providers, credit card agencies and government sponsored entities.
Definition: A financial product is a contract between two agents stipulating movements of cash now and in the future. A financial product has value, but it is not tangible.
Finance being about promises, it requires powers capable of enforcing them. This is why modern finance and modern money developed in parallel with the emergence, in western Europe, of powerful monarchies, which replaced feudality between 1000 and 1700. Continue reading “Financial Products: Back-To-School”