Definition of

Security

Security
When lending money, the "security" is the asset (such as a house or car) that the borrower will lose if they can't pay back the money.

Example: you borrow $10,000 and your car is the security for the loan. If you don't pay back the money, then the lender can take your car.


A security is also a general term for stocks, bonds and other types of legal documents for loans or shares in a company, government, or other organization.

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