debt security
- A financial instrument, like a bond, that proves the obligation of the issuer, which could be a government entity or a private corporation, to repay a loan to the holder of the document
- To finance its new factory, the corporation issued a debt security.
- The municipal agency floated a debt security to fund its infrastructure development plan.
- Investing in a debt security provides the investor a guaranteed return as long as the issuer does not default.
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