Capital instruments are financial tools used to share risk, prepare strong capital structures, and obtain public funds at reduced costs of capital. Common capital instruments in the Indian market include equity shares, preferential shares, debentures, commercial papers, long-term loans, and government bonds. These instruments vary in their levels of risk, control, and return - for example, equity shares provide high returns but also high risk and low control, while debentures provide low returns but also low risk and high control. The choice of capital instrument affects the capital structure of a company.