security, n. 1. Collateral given or pledged to guarantee the fulfillment of an obligation; esp.

, the assurance that a creditor will be repaid (usu. with interest) any money or credit extended to a debtor. 2. A person who is bound by some type of guaranty; surety. 3. An instrument that evidences the holders ownership rights in a firm (e.g., a stock), the holders creditor relationship with a firm or government (e.g., a bond), or the holders other rights (e.g., an option). A security indicates an interest based on an investment in a common enterprise rather than direct participation in the enterprise. Under an important statutory definition, a security is any interest or instrument relating to finances, including a note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in a profit-sharing agreement, collateral trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting trust certificate, certificate of deposit for a security, or certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of these things. A security also includes any put, call, straddle, option, or privilege on any security, certificate of deposit, group or index of securities, or any such device entered into on a national securities exchange, relating to foreign currency. Securities differ from most other commodities in which people deal. They have no intrinsic value in themselves they represent rights in something else. The value of a bond, note or other promise to pay depends on the financial condition of the promisor. The value of a share of stock depends on the profitability or future prospects of the corporation or other entity which issued it; its market price depends on how much other people are willing to pay for it, based on their evaluation of those prospects. What do the following have in common: scotch whiskey, self-improvement courses, cosmetics, earthworms, beavers, muskrats, rabbits, chinchillas, fishing boats, vacuum cleaners, cemetery lots, cattle embryos, master recording contracts, animal feeding programs, pooled litigation funds, and fruit trees? The answer is that they have all been held to be securities within the meaning of federal or state securities statutes. The vast range of such unconventional investments that have fallen within the ambit of the securities laws coverage is due to the broad statutory definition of a security. collateral security, n. 1. A security, subordinate to and given in addition to a primary security, that is intended to guarantee the validity or convertibility of the primary security. bond, n. 1. An obligation; a promise. 2. A written promise to pay money or do some act if certain circumstances occur or a certain time elapsed; a promise that is defeasible upon a condition subsequent; esp., an instrument under seal by which (1) a public officer undertakes to pay a sum of money if he or she does not faithfully discharge the responsibilities of office, or (2) a surety undertakes that if the public officer does not do so, the surety will be liable in a penal sum. 3. A long term, interest-bearing debt instrument issued by a corporation or governmental entity, usu. to provide for a particular financial need; esp., such an instrument in which the debt is secured by a lien on the issuers property. warrant, n. 2. A document conferring authority, esp. to pay or receive money. warrant, vb. 1. To guarantee the security of (realty or personalty, or a person). 2. To give warranty of (title); to give warranty of title to (a person). 3. To promise or guarantee. 4. To justify. 5. To authorize.