Definition of Security

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TeachMeFinance.com - explain Security



security -- (1) the collateral that is given, deposited, or pledged to guarantee an obligation or the payment of a debt. For example, the property on which a mortgage is issued is the security for the mortgage loan. (2) a financial instrument that provides evidence of a debt, or of rights to share in earnings or the distribution of property. Stocks and bonds are securities. (3) measures taken to protect property against theft or vandalism.

another definition...

Security -- 1. Property pledged as collateral to a debt.
2. Protection; assurance; indemnification.
3. A document that indicates evidence of indebtedness or of equity interest - including notes, bonds, debentures, stocks, certificate of interest, etc. which may be traded on an exchange.


historic definition...

Security -- Something of value pledged for the performance or fulfilment of a contract, as the payment of a loan; also a name for a stock or bond.


About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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