# Tokenized stocks

> How tango.finance strategies buy and hold tokenized stocks, how the vault prices them, why US market hours pause a strategy that holds them, and the risks they carry.

Source: https://app.tango.finance/docs/app/tokenized-stocks

A tokenized stock is a token, issued by a third party, that is designed to follow the price of a share. A tango.finance strategy can buy them on a schedule and hold them. Their prices update only while US stock markets are open, so a strategy that holds them rests when markets are closed: it can't trade, deposit or withdraw until they reopen. It is worth understanding them before you build a strategy around them.

> **Key points**
>
> - Strategies on Base can buy and hold tokenized US stocks. They are third-party tokens that follow a share price, not the shares themselves.
> - A strategy buys stocks and holds them. It never lends them.
> - The vault prices each stock with a feed that updates during US market hours. Some time after the market closes, once the feed's heartbeat passes, the price reads as stale, and the whole strategy pauses until markets reopen.
> - Over weekends and holidays, deploying, buying, selling, depositing and withdrawing can wait two days or more.

## Which stocks?

Review's Stocks group lists the stocks a strategy can add. On Base they are Coinbase tokenized stocks, shown with a c after the ticker, such as NVDAc for NVIDIA. The example Buy the Mag 7 Every Week buys seven of them in equal parts.

A strategy buys stocks through swaps, like any other token, and holds them in its Strategy account. Lending stocks is not supported: a prompt that asks for it is answered as not supported.

## How are they priced?

Each stock is a [registered asset](https://app.tango.finance/docs/vault/tracked-sub-accounts.md#the-asset-registry) of the strategy's vault. The tokenized equity adapter prices it from a Chainlink feed for the stock, and checks the issuer's onchain registry every time. So it catches a paused token or a corporate action, such as a split multiplier, straight away.

The feeds update during US equity trading hours. Overnight, at weekends, on market holidays and during corporate-action pauses, they hold their last value. Each feed has a heartbeat, the longest a price can go without an update before it counts as stale. So a held stock's price reads as stale once that heartbeat passes after the market closes, or at once during a pause.

The vault values each stock at its feed price, not at the price the token trades for onchain. The two can differ, especially outside market hours.

## What happens when markets are closed

If any stock the strategy holds has a stale price, the strategy's whole NAV (net asset value) is stale. See [When NAV is stale](https://app.tango.finance/docs/vault/sub-accounts.md#when-nav-is-stale). Until prices are fresh again:

| What | While markets are closed |
| --- | --- |
| Deploying a strategy with stocks | Not offered. Deploy Strategy shows when markets open, in UTC, and the draft stays |
| A program's stock buys | Wait for the next market session within their period. On weekends and holidays the strategy rests entirely |
| Every swap in the strategy, stock or not | Paused, because the vault checks every trade against oracle prices |
| Deposits and withdrawals | Wait, since they settle at NAV per share |
| Closing positions | Perps can still close. Everything else waits for the market to open |

Prices do not go stale the moment markets close, so a strategy can keep trading and settling for a while afterwards. Over weekends and holidays, expect two days or more.

## Risks

- A tokenized stock is not the stock itself. A third party issues each one and designs it to follow a share price. Holding one does not make you a shareholder, and gives you no voting rights or dividends unless the issuer's terms say so.
- The issuer decides the token's backing, rights and redemption terms. Issuers can approve or restrict which addresses may hold or move their tokens. A restriction could leave a position unable to move.
- The tokens trade onchain at any hour, but there is less liquidity when US markets are closed. Swaps can cost more, and prices can jump when markets open.
- Feeds lag behind the market because they update in steps. Valuations and settlement use the last update, not the live market price.
- Tokenized stocks may not be available everywhere or to everyone. Whether you can hold them depends on the laws that apply to you.

Tango does not issue these tokens and does not stand behind their issuers' claims.

## Not the same as stock perps

A perp on a stock is a contract on the price, not the asset. Hyperliquid lists stock perps on its xyz markets, which tango.finance does not support. A tango.finance strategy trades perps on Hyperliquid's main exchange only. See [Perps on Hyperliquid](https://app.tango.finance/docs/app/venues/hyperliquid.md).