Collateral

Something you use to back up yourself and your investments. It’s like when you go bowling and give the alley attendant your driver’s license in exchange for your bowling shoes; he knows that, since he has your license, you’re not going to walk out of there and take the shoes with you. So he feels more than safe giving them to you. When it comes to money, you might offer up your car or house as collateral for taking out a loan, or cash to get a secured credit card.

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2017-12-12T19:48:00+00:00

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