> ## Documentation Index
> Fetch the complete documentation index at: https://help.arcus.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# What are Stock Tokens?

A Stock Token is an ERC-20 digital asset carrying a contractual right to redeem with the issuer for the cash (market) value of a linked security - a stock, commodity, or index ETF.

It tracks the security's price (including reinvested dividends) and is backed by the issuer's reserves of the underlying, or cash/equivalents when the underlying is on loan.

It gives economic exposure to the underlying and can be self-custodied and transferred on-chain.