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 of IBM, 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 instruments.

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