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Details Title: Real Estate Investments Description: Mid Term Total Flash Cards: 15 Created: 10/15/2006 19:46:36	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Risk Return Tradeoff Principle Definition The principle that potential return rises with an increase in risk. For a given level of risk an investor must be able to accept the corrosponding level of risk. Term SIU Definition Person who has 1 unit of surplus income Term Primary Market Definition Maket in which investors first have the oportunity to buy a newly issued security Term Expectations Theory Definition Future interest rates are determined by the future rate of expected future inflation. Term market segmentation theory Definition suggests there are two or more markets for securities with different maturities Term REIT Real Estate Investment Trusts Definition consists of purchasing stock in a corporation that in turn purchases real estate properties, mortgages on real estates, or a combination Term disintermediation Definition withdrawl funds from a financial intermediary in order to invest in instruments yielding a higher return. Term Real Estate Limited Partnerships (RELPS) Definition Limited Partnerships that provide limited liability to the partner-investors, just as a corporate stock does. Term Mortgage-Backed Securities Definition securities backed by pools of mortgages Term Collateralized Mortgage Obligations (CMO's) Definition A type of mortgage backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds prospectus. Term (CMBS) Commerical Mortgage Backed Securities Definition that is collateralized by a pool of commercial properties. Term Alternative Mortgage Instrument (AMI) Definition Residential mortgage loan that differs from a fixed-rate, fully amortizing mortgage in the interest rate, the monthly or periodic payments, or the terms of repayment. Term (IOs) Definition The rights to recieve interest only payments from the interest part of a securtity Term (POs) Definition The right to recieve Principle only from a security Term Servicing Rights Definition a financial intermediary services a mortgage and collects part of the fee