What Does Conduit Mean?


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Aun Jafery answered
A conduit refers to a pipe or channel which is employed for conveying fluids or liquids such as water. It is also used when referring to a duct or tube that is used to enclose cables or wires. It is also a means through which something is sent and received or transmitted. An antiquated meaning of the word was fountain.

It can be traced back to Middle English and onwards to the Old French all the way to the Medieval Latin word "conductus" meaning "to lead together".

Conduits also stands for the procedure where Government or Private Organisations form a large pool of mortgages and then offer pay through or pass through securities to outside investors. For instance the government has a pool of say five hundred loans of two hundred thousand each for a concurrent period of 30 years at an interest rate of five percent, they can sell these loans to outside investors at a lower rate of interest say four percent and reuse the capital earned.

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