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What does security mean in finance?

Updated: 8/21/2019
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8y ago

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Financial security means peace of mind for the person or entity involved, due to having enough assets to cover expenses and enough money left over to deal with emergencies or unforeseen circumstances.

For example, an individual might be financially secure if he or she has a steadily-paying living wage job, benefits, and a place to live. A company might be financially secure if it has been experiencing steady growth and has enough money that it could reasonably survive a dip in stock prices or in sales, especially without having to lay off employees.

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