Cash financial instruments are typically generated, or issued, by organizations (mostly governments and corporates) in order to raise capital. In this context, those organizations are often referred to as issuers.

The prices for cash instruments are, either, set by the issuer (after advice from financial professionals), or arrived at by negotiation between the issuer and investors, who typically buy financial instruments with the expectation of making a profit.

Once issued and sold, the holders (traders and investors) can trade them openly in the financial markets, at a price set by supply and demand.

Cash financial instruments are assets whose value comes directly from the market, and they can be quickly converted into cash. These include instruments such as stocks, bonds, and currencies, which are highly liquid and actively traded in financial markets.

They fall into two main categories: securities and deposits/loans. Securities include equities and debt instruments like government bonds and corporate bonds. Deposits and loans cover agreements such as bank savings accounts or short-term credit arrangements.

The value of these instruments is influenced by market conditions, including interest rates, economic trends, and supply-demand factors. Their simplicity and liquidity make them popular choices for short-term investments and financial portfolio management, offering flexibility and ease of access for traders and investors.