Distressed is an adjective. It can also be a verb.
A verb is a Word that describes an action (run, walk, etc), a state of being (exist, stand, etc) or occurrence (happen, become, etc).
For example, "It distressed her greatly to see so many people suffering."
An adjective is a Word that describes a noun (the car is blue / it was a cold day / etc).
For example, "The products were damaged in shipment, so they were sold as distressed merchandise."
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