Listed Stock or Listed Security - Explained
What is Listed Stock?
Written by Jason Gordon
Updated at April 17th, 2022
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What is Listed Stock?
Security means an instrument for the purpose of investment in the productivity of others. For example, stock shares, bonds, options, swaps, investment contract, are all securities. A Listed Security or Listed Stock is sold on a public exchange. This security is displayed on the official list of stocks for sale on the exchange.
Back to:INVESTMENTS & TRADING
How Does a Listed Security Work?
The securities that are not listed are traded in the Over the Counter (OTC) market. Other names of the Listed Security are Quoted Security or Listed Investment. It can be a bond, ETF (Exchange Traded Fund), stock, mutual fund, derivative, or any other type of security that is traded on the national exchange. Exchanges on which a listed security may be sold include, the New York Stock Exchange or NASDAQ (National Association of Securities Dealers Automated Quotation System). The New York Stock Exchange (sometimes called the Big Board) is likely the most famous exchange in the world, have been around since 1792. Listed Stock is considered more well-settled as compared to the privately held organizations; however, it is not always true. To have its stock listed, a company must make public filings regularly with the SEC (Securities and Exchange Commission) in accordance with securities law and exchange standards. These filings contain the details of the business operations of a company as well as its financial performance. As an example, the 10-K is a form which a company that has the listed securities must have to file with the Securities and Exchange Commission (SEC) in the United States. The disclosure, particular elements and requirements of the disclosure of 10-K bonds, stocks, securities, exchange-traded funds, derivatives and mutual funds are dictated by SEC regulations S-K and S-X along with the instructions in 10-K form. A company can use all these things as listed securities. If the price of a listed stock rapidly increases or decreases, the exchanges might have to restrict trading.