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Question
Explain the following term/concept.
Listed company
Solution
(1) A listed company is a company which has issued any of its securities listed on any recognised stock exchange. Security refers to a document issued by a company or a government called ‘the issuer’ and acknowledging that issuer has received money or some other valuable consideration. Security includes shares, debentures, bonds, etc.
(2) A public limited company may be a listed company or unlisted company. The listed companies are required to follow certain provisions of the Companies Act and guidelines issued by the Securities and Exchange Board of India (SE81).
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