“What is … ?” – a security

An investment security is an asset or guarantee provided to a creditor (e.g. bank) to minimise the risk of financial loss.
It serves as security for loans or investments and can take various forms, e.g:

• Tangible assets: Property, machinery or other physical assets
• Financial collateral: Shares, bonds or other financial instruments
• (can be used as collateral for a loan)
• Guarantees: A third party undertakes to assume the debtor’s obligations if the debtor becomes insolvent
• Deposits: Amounts of money deposited as collateral to cover potential losses.
• Insurance: Policies that provide financial compensation in the event of loss or damage.