GAAP Definition

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GAAP is Generally Accepted Accounting Principles or Generally Accepted Accounting Procedures (less common).

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PREPAYMENT RISK, in the area of mortgage-backed securities, which are backed by loans on property, is the possibility that home owners will payoff their mortgages early, returning the investor's principal earlier than expected. This typically occurs during a declining inter­est rate environment, when home owners can refinance at lower rates, leaving investors vulnerable to the risk of reinvestment at lower rates.

FOOT A COLUMN is to add a column of numbers.  To test footing is to add the column again to check accuracy.

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