stapled security

Definition

A security which is comprised of two parts that cannot be separated from one another. The two parts of a stapled security are a unit of a trust and a share of a company. The resulting security is influenced by both parts, and must be treated as one unit at all times, such as when buying or selling the security.

Use stapled security in a sentence

You should try and find a good stapled security that you think will be a good investment for your future.

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They purchased a stapled security and knew that it would always be one security. But now they had a unit of trust and a share in the company.

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