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Simple English definitions for legal terms
listed security
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A quick definition of listed security:
A listed security is a type of investment that represents ownership or creditor rights in a company or government. It can be a stock, bond, or other financial instrument. Unlike physical goods, securities do not have intrinsic value and their worth depends on the financial condition and future prospects of the issuer. They are bought and sold on stock exchanges and their value is determined by supply and demand.
A more thorough explanation:
A listed security is a type of investment that is traded on a stock exchange. It can be a stock, bond, or other financial instrument that represents ownership or debt in a company or government entity.
For example, if you buy a share of stock in a company that is listed on a stock exchange, you become a part owner of that company. You can sell your share of stock to someone else on the exchange if you want to cash out your investment.
Another example of a listed security is a government bond. When you buy a bond, you are essentially loaning money to the government. The government promises to pay you back with interest over a certain period of time.
Listed securities are different from other commodities because they don't have intrinsic value on their own. Their value depends on the financial condition of the company or government entity that issued them, as well as market demand.