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Explain What a Mortgage-Backed Security (MBS)is and How It Functions

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Essay

Explain what a mortgage-backed security (MBS)is and how it functions.Also,explain why these securities were such a problem during 2008.


Definitions:

Compensation Mix

The variety of compensation components, such as salary, bonuses, stock options, and benefits, used by an employer to reward employees.

Goal-sharing Plans

Employee incentive programs where rewards are based on the collective achievement of specific organizational goals, encouraging team collaboration.

Bonus Payouts

Additional financial compensation awarded to employees beyond their normal salary, often tied to performance or company profitability.

Employee Participation

The involvement of employees in the decision-making processes of an organization to increase engagement and productivity.

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