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LSDefine

Simple English definitions for legal terms

registered stock

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A quick definition of registered stock:

Registered stock is a type of investment that shows ownership in a company. It is a piece of paper that proves you own a part of the company and can make money if the company does well. It is different from other things people buy because it doesn't have value on its own, but depends on how well the company does.

A more thorough explanation:

Registered stock is a type of investment that shows the holder's ownership rights in a company. It is a type of security, which is a type of collateral given to guarantee the fulfillment of an obligation.

For example, if you buy registered stock in a company, you become a part-owner of that company. You have a right to vote on important decisions and you may receive a share of the company's profits in the form of dividends.

Registered stock is different from other types of stock because it is registered in the name of the owner. This means that the company knows who owns the stock and can communicate directly with them. It also means that the stock cannot be easily transferred to someone else without the company's knowledge.

Overall, registered stock is a way for people to invest in a company and potentially earn a return on their investment.

registered security | registered tonnage

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