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Simple English definitions for legal terms
structured security
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A quick definition of structured security:
Structured security refers to a system or plan put in place to protect something or someone from harm or danger. It can be compared to a safety net that ensures that if something goes wrong, there is a backup plan to prevent or minimize damage. This can include measures such as security cameras, passwords, fire alarms, and other safety protocols. Essentially, structured security is a way to keep things safe and secure.
A more thorough explanation:
Structured security is a type of security that helps protect against danger or attack. It can also refer to collateral given to guarantee the repayment of a debt.
For example, when you take out a loan, you may need to provide structured security, such as a house or car, to ensure that the lender will be repaid. This collateral gives the lender a sense of security that they will not lose their money if you are unable to repay the loan.
Structured security can also refer to financial instruments, such as stocks or bonds, that represent ownership or creditor rights in a company or government. These securities have value based on the financial condition and prospects of the entity that issued them, and their market price depends on how much other people are willing to pay for them.
Overall, structured security is a way to provide protection and assurance in various financial transactions and investments.