What Are the Securities Which Are Created by Splitting the Cash

question 63

Multiple Choice

What are the securities which are created by splitting the cash flows from mortgage pools according to specific allocation rules called?

• A) collateralized mortgage obligations
• B) collateralized housing bonds
• C) mortgage amortized strips
• D) pooled mortgage obligations
• E) secured mortgage strips

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Definitions:

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price, either as a profit or a deficit.

Share Issue

A process by which a company distributes new shares to shareholders, either as part of a public offering or a private placement.

Acquisition Differential

The difference between the cost of an acquisition and the fair value of the net identifiable assets acquired.

Ownership Interest

Refers to the percentage or portion of a company that is owned by a shareholder, indicating a claim on assets and possibly a right to the income of the company.