what are collateral securities?

Answer Posted / ramesh

Collateral security is extra security provided by a
borrower to back up his/her intention to repay a loan.
collateral securities are the securities bought against
funding by the third party. if we dont have sufficient fund
to buy securities in cash we can opt this option.
Security for the performnce of covenants or the payment of
moneybesides pricipal security

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