Legal Definitions - adjustment security

An adjustment security is a type of security that is used as collateral to guarantee the fulfillment of an obligation. A security is something that represents ownership or creditor rights in a company or government entity.

For example, a bond is a type of security that represents a promise to pay back a loan with interest. If a company issues a bond, they may use an adjustment security as collateral to ensure that they will be able to pay back the loan.

Another example of a security is a stock, which represents ownership in a company. If someone owns a stock, they have a stake in the company's profits and losses. They may also have voting rights in the company's decisions.

Overall, a security is a way for people to invest in a company or government entity and potentially earn a return on their investment. An adjustment security is just one type of security that can be used to ensure that an obligation is fulfilled.