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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. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.