A class of financial instruments
that are traded on organised exchanges, for example the New York Stock Exchange
, or NYSE
Instruments traded on organised exchanges are characterised by several factors, amoung them being standardisation
In other words, all details
of these instruments are clearly and precisely specified; customisation between buyer and seller is not possible.
If one purchases a single share
, for exmaple, this allows the owner to claim a specified percentage
of this firms profits. Any other purchaser of a single share of IBM stock would have an identical claim.
Compare this with Over the Counter
, or OTC