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.