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      1 # Depository
      2 
      3 **Source:** [https://www.investopedia.com/terms/d/depository.asp/](https://www.investopedia.com/terms/d/depository.asp/)
      4 
      5 **Definition:** A depository is an institution that holds securities and assists in their trading. 
      6 
      7 Intuitively, if I have 10 tons of wool, it is beneficial for me to trade a certificate of ownership for the wool instead of bringing the actual wool with me.