Creating or editing a security group
A mail-enabled security group is an entity that exists within Active Directory as well as within Exchange Online. You can add AD groups to ownership and membership if you are in AD, but you can't do that in the Exchange Online admin portal unless the AD group in question is also a mail-enabled security group, because Exchange can only see groups if they have email. You can add any email-enabled account to a mail-enabled security group.
Security groups have the advantage that they can be assigned a set of consistent rights. A mail-enabled security group can receive mail the way a distribution list does, and can have SharePoint rights assigned the way any AD security group can. There are other uses for mail-enabled ...
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