Newbie Security Question

Hello,
I'm having trouble understanding the concept of security in relation to a web site. From what I understand, you are supposed to place particular documents you don't want accessable to others on the internet above your root directory, but I don't understand how you can do this without hosting a site yourself. If you are paying for hosting on someone else's server, how do you make particular files secure? Such as password files and the like? Is there another way to make files secure? Any help would be much appreciated.

-Ashley

 

 

 

 

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