LISTED SECURITY Meaning and
Definition
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A listed security refers to a financial instrument that has been authorized for trading on a regulated exchange. It is a type of investment instrument, either a stock or a bond, that has been approved and admitted by a stock exchange for trading purposes. When a security is officially listed, it means that it meets the specific criteria and requirements established by the exchange to ensure its reliability and transparency.
Listed securities offer advantages to both investors and issuers. For investors, they provide easy access to a wide range of investment opportunities, enabling them to buy and sell these instruments through the exchange. By being listed, the security gains liquidity, meaning that it can be readily bought or sold in the market, increasing its marketability. Investors benefit from this liquidity as it allows them to sell their holdings quickly and easily if needed.
For issuers, a listed security provides credibility and visibility to potential investors. Being listed on a recognized exchange enhances an issuer's reputation and demonstrates compliance with stringent regulatory standards. It also expands their access to capital as it facilitates the process of raising funds through the sale of securities to a larger pool of investors.
Overall, a listed security is a financial instrument that has undergone the rigorous approval process of a stock exchange, ensuring that it meets certain criteria, and is authorized for trading.
Common Misspellings for LISTED SECURITY
- kisted security
- pisted security
- oisted security
- lusted security
- ljsted security
- lksted security
- losted security
- l9sted security
- l8sted security
- liated security
- lizted security
- lixted security
- lidted security
- lieted security
- liwted security
- lisred security
- lisfed security
- lisged security
- lisyed security
Etymology of LISTED SECURITY
The word "listed security" does not have a distinct etymology as it is a combination of two separate terms - "listed" and "security".
The term "listed" refers to the act of including or registering a company's stocks or securities on a stock exchange. When a security is "listed", it means that it has met the necessary requirements and has been authorized for public trading on a particular exchange.
On the other hand, "security" in this context refers to a financial instrument that holds monetary value, such as stocks, bonds, or other tradable assets. The term "security" itself comes from the Latin word "securitas", which means "freedom from risk" or "protection".
When used together, "listed security" refers to a financial instrument that has been officially registered and authorized for trading on a stock exchange.
