Final answer:
Shares traded on securities markets that represent ownership in a basket of securities are known as Exchange-Traded Funds (ETFs). These shares confer ownership and are traded on stock exchanges like individual stocks. Shareholders have a legal right to a portion of a company's stock, which they can buy and sell.
Step-by-step explanation:
The shares traded on securities markets representing the legal right of ownership over a part of a basket of individual stock certificates or other securities are known as Exchange-Traded Funds (ETFs). An ETF is a type of investment fund and exchange-traded product, i.e., they are traded on stock exchanges. ETFs are similar to mutual funds but are listed on exchanges and ETF shares trade throughout the day just like an ordinary stock.
The key characteristics of shareholders are that they own at least some shares of stock in a company. Shares represent a firm's stock divided into individual portions and serve as one of the basic units of ownership. When investors purchase shares, they become partial owners of the company, and these shares can be traded on stock exchanges, which facilitate the buying and selling of stocks. Examples of corporations with millions of shares of stock include IBM, Ford, and Microsoft.