Lesson plan
Stapled security
A stapled security is a type of financial instrument. It consists of two or more securities that are contractually bound to form a single salable unit; they cannot be bought or sold separately. Stapled securities have especially been used in Australia; stapling is relatively uncommon in the rest of the world. The two parts of the salable unit are usually (a) a share in a company and (b) a unit in a trust related to the company. For example, a company that manages a trust may have units of the trust attached (stapled) to the shares of the company. The company may be responsible for managing the fund and development opportunities, and may charge the trust a fee. The trust, in turn, is the legal owner of the property assets. 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. The investment trust will own the assets and the company will manage the assets.
Article summary
A stapled security is a type of financial instrument. It consists of two or more securities that are contractually bound to form a single salable unit; they cannot be bought or sold separately. Stapled securities have especially been used in Australia; stapling is relatively uncommon in the rest of the world. The two parts of the salable unit are usually (a) a share in a company and (b) a unit in a trust related to the company. For example, a company that manages a trust may have units of the trust attached (stapled) to the shares of the company. The company may be responsible for managing the fund and development opportunities, and may charge the trust a fee. The trust, in turn, is the legal owner of the property assets. 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. The investment trust will own the assets and the company will manage the assets.
Key claims
No claims recorded.
Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
No sources recorded.
Key claims and bibliography are generated from the same tracked claims and sources as the article page.