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    Definition of security

    Dictionary of Accounting Terms: security
    security

    1. financial instrument that shows ownership, such as an equity item (e.g., stock), debt instrument (e.g., bond, note), or right (e.g., option).
    2. collateral in support of debt. An example is real estate that serves as security for a bank loan.

    Dictionary of Banking Terms: security
    security

      Finance:Certificate evidencing ownership of equity (stock), ownership of a debt obligation payable (bond), and the rights to ownership implied by options and warrants. Securities, when pledged as collateral, may be used to obtain bank financing.

    Dictionary of Business Terms: security
    security

    Finance: collateral offered by a debtor to a lender to secure a loan, called collateral security.
    Investment: instrument that signifies an ownership position in a corporation (a stock), a creditor relationship with a corporation or governmental body (a bond), or other ownership rights.

    Dictionary of Finance and Investment Terms: security
    security

    Finance: collateral offered by a debtor to a lender to secure a loan called collateral security. For instance, the security behind a mortgage loan is the real estate being purchased with the proceeds of the loan. If the debt is not repaid, the lender may seize the security and resell it.

    Personal security refers to one person or firm's guarantee of another's primary obligation.
    Investment: instrument that signifies an ownership position in a corporation (a stock), a creditor relationship with a corporation or governmental body (a bond), or rights to ownership such as those represented by an option, subscription right, and subscription warrant.

    Dictionary of Real Estate Terms: security
    security
    1. property that serves as collateral for a debt.
      Example: real estate serves as security for a mortgage loan. In the event of default on the loan, the lender may sell the property to satisfy the debt.

    2. a document that serves as evidence of ownership.
      Examples: The following are securities:

      • common and preferred stocks
      • bonds
      • mortgages

    The Securities and Exchange Commission defines limited partnership interests and condominiums and cooperatives in certain situations as securities.

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