Landlord

What it is:

A landlord is an individual who owns real estate that he or she leases to renters.

How it works/Example:

Landlords may own either residential or commercial properties. They lease the properties to families or companies in return for monthly rent. As the owning party, a landlord's obligations include structural maintenance and repairs as well as property tax payments (typically built into the rent).

For example, suppose Bob owns a three-bedroom apartment that he chooses to lease for rent. A family enters into a lease contract with Bob, the landlord. The family agrees to pay him $1,000 each month for a specific length of time (usually one year) in return for the right to live in the apartment. 

Why it Matters:

By leasing their properties, landlords can generate cash flow that accompanies the appreciation in their properties' market value.

Best execution refers to the imperative that a broker, market maker, or other agent acting on behalf of an investor is obligated to execute the investor's order in a way that is most advantageous to the investor rather than the agent.