Important Financial Investment Terms
Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Collateralized Mortgage Obligation (CMO)'
A mortgage-backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. There are 3 investor classes of which class A is the first to receive payments, then B, then C. Class A investors bear the highest risk.