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Securities
Securities are investments in which the investor owns part of a company (known as stock) or is owed money by a corporation or a government (known as bonds).
Why they matter: Mortgage-backed securities made major news in September, when the federal government had to seize Fannie Mae and Freddie Mac, which provide financing for the housing market by buying mortgages from lenders. Sometimes they resold the mortgages to investors as mortgage-backed securities.
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