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Stocks are a type of security that represents ownership in a company, while securities are a broader category that includes various financial instruments like stocks, bonds, and derivatives.

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5mo ago

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What is the relationship between mortgage backed securities and stocks?

Mortgage-backed securities and stocks are both types of investments, but they are different in how they work and the risks involved. Mortgage-backed securities are tied to the performance of a pool of mortgages, while stocks represent ownership in a company. The relationship between the two is that changes in the housing market can impact both mortgage-backed securities and stocks, as they are both influenced by economic conditions and investor sentiment.


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