Financial Instruments. Perspective and Challenges

Abstract

The paper analyzes the diversity of financial instruments available on the market, highlighting both the opportunities and the associated risks. The study focuses on stocks, bonds, ETFs, investment funds, cryptocurrencies, gold and commodities, highlighting their role in portfolio diversification and investment risk management. A central aspect of the research is the low level of financial literacy in Romania, identified through studies conducted by financial institutions. This deficit limits the population’s participation in the capital market and negatively influences investment decisions. Among the proposed solutions are the intensification of financial education programs, the digitalization of access to investments and the development of investor-friendly regulations. Looking ahead, digitalization and technological innovations, along with the growing interest in ESG investments, will redefine financial markets. However, the challenges related to market volatility, geopolitical risks and changing regulations will continue to influence investment strategies. The paper concludes that success in the financial market depends on investors' continuous education and adaptability to new global trends and challenges. CZU: [331.71+336.76](498); JEL: G11