Stapled security
Encyclopedia
A stapled security is a type of financial instrument, a security
that is contractually bound to one or more other securities to form a single salable unit.
For example, a unit of shares in a company
can be bound to unit of an investment trust
and they must be purchased and sold together.
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
that is contractually bound to one or more other securities to form a single salable unit.
For example, a unit of shares in a company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
can be bound to unit of an investment trust
Investment trust
An Investment trust is a form of collective investment found mostly in the United Kingdom. Investment trusts are closed-end funds and are constituted as public limited companies....
and they must be purchased and sold together.