PRICE TO SALES Definition

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PRICE TO SALES see PRICE TO REVENUE.

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INSURANCE CLAIM is a written notification to an insurance company requesting payment of an amount due under the terms of the policy.

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.

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