Wednesday, February 3, 2021

Security terminology

Security (finance) is how secure you feel about lending or buying (equities of the issuing company). Lender feels more secure if they have claim (and they do) on the company's assets such as land. The company issuing debt or shares will give something (collateral or promises) in written paper ( e.g. a bond) to the investor/lender, that paper secures the investor/lender's rights, hence it's call security.