"Financial Asset Securitization" refers to the creation of financial institutions such as banks or general enterprises through special purpose vehicle (special purpose trust or special purpose corporation) and the functions of segregating risks from various assets such as residential Loans, credit card receivables, etc., to screen out assets that generate future cash flows, easy to predict credit quality, and have standard characteristics (such as similar maturities, interest rates, debtor attributes, etc.) as a basis or guarantee, through credit enhancement and credit rating. The combination of the mechanisms, repackaging the assets into a unitized, small-quantity securities type, and the process of selling to investors.

“Real Estate Securitization” refers to the legal relationship between an investor and the real property it invests in. It is transformed from a property right that directly holds the ownership of the real property to a securities that holds economic benefits. It means that the immovable property will be transformed from the original rigid asset type into a liquid securities type. At present, real estate securitization system in Taiwan is divided into "asset use type" (that is, the "real estate investment trust" system that first issues securities raised funds and reinvests in real estate), and "asset flow type" (that is, the real estate trust is first issued to issue securities). There are two types of "real estate asset trust" systems for raising funds.