Definition: In investing, a financial instrument representing rights such as an ownership interest or debt claim. In lending, security can also mean collateral supporting repayment.
Example
Shares in a real estate investment trust are securities; a mortgage can provide security for a separate loan obligation.
Keep the distinction clear
The meaning depends on context. Owning an investment security differs from holding a lien against a particular property, and classification can involve specific securities laws.
Related terms
Real Estate Investment Trust (REIT) · Collateral · Mortgage
Keep studying
Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return
References: California DRE: real estate glossary
Pronunciation (US): sih-KYOOR-ih-tee (capitals show stress)
Pronunciation reference: Merriam-Webster
Comments
0 comments
Article is closed for comments.