Term
| Risk Return Tradeoff Principle |
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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. |
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Definition
| Person who has 1 unit of surplus income |
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Term
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Definition
| Maket in which investors first have the oportunity to buy a newly issued security |
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Term
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Definition
| Future interest rates are determined by the future rate of expected future inflation. |
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Term
| market segmentation theory |
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Definition
| suggests there are two or more markets for securities with different maturities |
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Term
| REIT Real Estate Investment Trusts |
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Definition
| consists of purchasing stock in a corporation that in turn purchases real estate properties, mortgages on real estates, or a combination |
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Term
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Definition
| withdrawl funds from a financial intermediary in order to invest in instruments yielding a higher return. |
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Term
| Real Estate Limited Partnerships (RELPS) |
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Definition
| Limited Partnerships that provide limited liability to the partner-investors, just as a corporate stock does. |
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Term
| Mortgage-Backed Securities |
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Definition
| securities backed by pools of mortgages |
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Term
| Collateralized Mortgage Obligations (CMO's) |
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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. |
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Term
| (CMBS) Commerical Mortgage Backed Securities |
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Definition
| that is collateralized by a pool of commercial properties. |
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Term
| Alternative Mortgage Instrument (AMI) |
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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. |
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Term
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Definition
| The rights to recieve interest only payments from the interest part of a securtity |
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Term
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Definition
| The right to recieve Principle only from a security |
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Term
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Definition
| a financial intermediary services a mortgage and collects part of the fee |
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