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.

What is a staple share?

Stapling securities is a term used when two securities are “stapled together” so that under contract they must be sold together, for example, this term is often used in relation to a unitholders and Shareholders Agreements, so that the units and shares are stapled together so that when a transfer or sale of shares is ...

What is stapled equity?

Stapled investments are seemingly distinct securities (e.g., debt and equity) that are inseparable by the terms of the investment – hence the term “stapled.” While separate in form, the investments limit a holder, either legally or in substance, from disposing of one without the other.