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Rank: Advanced Member
Joined: 5/23/2013 Posts: 692 Neurons: 3,320
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Hi everyone, Have been reading about a particular business area and came across the term "securities" but had hard time grasping its meaning, pls do me a favour by explaining it to me. Pls I'm green and humbly ask to be explained to like a six year old. Many thanks.
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 Rank: Advanced Member
Joined: 2/14/2015 Posts: 5,266 Neurons: 315,308 Location: Corinth, New York, United States
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It is very common to use the word "securities" to mean "stocks and bonds". Here's a dictionary definition (one of several) of "security": 6. A financial instrument, such as a stock or bond, representing rights of ownership or creditorship and often traded in secondary markets.(Link)
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 Rank: Advanced Member
Joined: 4/20/2016 Posts: 2,662 Neurons: 164,077 Location: South Dublin, Ireland
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Like six years old? Hm...
Money. But not like the one you go to buy a chocolate and pay. You cannot pay with securities in the shop. There are people who can exchange securities for 'real' money if you give them your securities. Securities are safely kept by trusted people. Sometimes, the longer you keep those securities and do not exchange them for banknotes, you can get more than the value on a piece of paper which says how much worth they are. Because you are six years old, I, your father, must go with you to those people who keep your securities to exchange them for money if you need to buy a chocolate. But, as long as I am with you, you do not need to pay for chocolate. I have one for you. Lindt chocolate.
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Rank: Advanced Member
Joined: 5/23/2013 Posts: 692 Neurons: 3,320
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Thank you very much gentle people. So in this regard securities are money, right? So, is money paid to insurance companies so that they protect you is deemed security? Can expantiate. Still six years old
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 Rank: Advanced Member
Joined: 4/20/2016 Posts: 2,662 Neurons: 164,077 Location: South Dublin, Ireland
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Yes, you are right. In this regard securities are money. If money is paid to insurance company then the story is a little different. Money paid to insurance company is paid to insure. This means, to give you in the future money if something goes wrong. This what is insured against something happening wrong can give you a hope for making good. It is basic explanation that in the event if anything what is protected by the insurance goes wrong, you can get money to stop worrying about what bad happened. In this regard you are right saying that money paid to insurance companies protect you. And this is deemed security, too. So, you can now understand that, securities have more than one simple explanation. However, what is a common feature for these two explanations is that, securities are money. Money can give you security. And, in the case of insurance companies, protection from bad things happening, even by chance.
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 Rank: Advanced Member
Joined: 5/1/2017 Posts: 5,989 Neurons: 1,336,281 Location: Casablanca, Grand Casablanca, Morocco
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taurine wrote:Like six years old? Hm...
Money. But not like the one you go to buy a chocolate and pay. You cannot pay with securities in the shop. There are people who can exchange securities for 'real' money if you give them your securities. Securities are safely kept by trusted people. Sometimes, the longer you keep those securities and do not exchange them for banknotes, you can get more than the value on a piece of paper which says how much worth they are. Because you are six years old, I, your father, must go with you to those people who keep your securities to exchange them for money if you need to buy a chocolate. But, as long as I am with you, you do not need to pay for chocolate. I have one for you. Lindt chocolate.
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 Rank: Advanced Member
Joined: 5/1/2017 Posts: 5,989 Neurons: 1,336,281 Location: Casablanca, Grand Casablanca, Morocco
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Thank you. Good clarification.
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 Rank: Newbie
Joined: 10/14/2019 Posts: 2 Neurons: 6 Location: New York, Florida, United States
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When it come to securities that means features or market which offer you additional way to secure your money with some risk
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 Rank: Advanced Member
Joined: 3/14/2020 Posts: 134 Neurons: 91,579 Location: Parker, Colorado, United States
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NKM wrote:It is very common to use the word "securities" to mean "stocks and bonds". Here's a dictionary definition (one of several) of "security": 6. A financial instrument, such as a stock or bond, representing rights of ownership or creditorship and often traded in secondary markets.(Link) agreed
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