Generic Securities

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DEFINITION of 'Generic Securities'

A security backed by recently issued loans or mortgages. Its value is less than that of a security whose backing is over one year old. Securities over a year old are called seasoned securities.

INVESTOPEDIA EXPLAINS 'Generic Securities'

A generic security does not yet have a history that potential investors can look to for past performance rating as a seasoned security does. However, as they are valued less by investors, generic securities are less expensive to purchase.

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