Mutual Fund Theorem Theorem suggested by James Tobin stating that for each risk level there is just one fund meeting the criteria. States that investors will prefer to invest risk capital in mutual fund or market index. … [Read more...]
Minimum Price Fluctuation
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Minimum Price Fluctuation Also called tick, point. The smallest possible upward change in price in a given contract during trading. … [Read more...]
Multiple-Issuer Pools
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Multiple-Issuer Pools Pool of funds created from aggregating the loan packages of different issuers under the GNMA-II program. … [Read more...]
Magic of Diversification
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Magic of Diversification Related: Markowitz diversification Reduction of risk effectively achieved in a portfolio without adversely impacting expected returns by means of accurate combination of the portfolio’s assets with low or negative correlations (covariances). … [Read more...]
Mutualization Of Risk
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Mutualization Of Risk Sharing costs associated with loss and risk among different investors or businesses. Reduces the degree of risk faced by any single entity. … [Read more...]
Management Fee
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Management Fee An advisory fee for investment charged by a financial advisor and payable by a fund. Amount depends on average assets of the fund, but sometimes calculated using a sliding scale that moves downward when the fund’s dollar value is on the rise. … [Read more...]
Money Supply
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Money Supply The amount of money in the economy. M1-A denotes currency and demand deposits, M1-B denotes M1-A and other checkable deposits, M2 denotes M1-B and overnight repos, savings, money market funds, time deposits less than $100M, M3 denotes M-2 and time deposits exceeding … [Read more...]
Match Fund
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Match Fund Banking concept where a loan or asset is match funded by buying or taking a deposit with same maturity. Used in the Euromarket terminology. … [Read more...]
Macaulay Duration
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Macaulay Duration Measure of evaluating time remaining until maturity using weighted averages where the current value of the cash flow divided by the bond price is used as the weight. … [Read more...]
Macroeconomic Factor
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Macroeconomic Factor Factor that affects a majority of the population and is relevant to the economy broadly at regional or national level. For example, economic output, inflation, unemployment, savings etc. … [Read more...]
Mail Float
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Mail Float Part/ Section of disbursement and collection process wherein checks mailed are trapped in the postal system and are neither with sender nor receiver. … [Read more...]
Maintenance Margin Requirement
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Maintenance Margin Requirement Related: margin, margin call. The amount of money that is required to be maintained in the account at all times. This sum is usually less than but part of the original deposit. When account holder’s equity in any futures position falls below … [Read more...]
Make a Market
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Make a Market Establishing a buy or sell price level by giving quotes or bids. A dealer communicates his willingness to trade by ‘making a market’. … [Read more...]
Make To Order – MTO
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Make To Order – MTO Production strategy that allows consumers to buy products customized to their specific needs. The product is manufactured only after the order is placed and takes into account the specifications given by the customer. … [Read more...]
Making Delivery
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Making Delivery The physical delivery by the seller to buyer, of an asset underlying a forward contract. … [Read more...]
Majority Voting
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Majority Voting Related: cumulative voting. System of voting where each of the directors is voted upon separately. … [Read more...]
Managed Float
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Managed Float Also called "dirty" float. A system of floating/ moving exchange rates where currency fluctuations are managed or controlled by intervention by the central bank. … [Read more...]
Management/Closely Held Shares
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Management Closely Held Shares The proportion of shareholding that is owned by individuals closely linked to the company, according to the definition of the Securities and Exchange Commission. A portion of such shares may be included as part of Institutional Holdings, thus … [Read more...]
Management Buyout (MBO)
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Management Buyout (MBO) An acquisition with a leverage where the acquirer is led by the management of the firm. … [Read more...]
Mark-to-Market
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Mark-to-Market Adjustment of book value or value of collateral of securities to reflect market value prevailing at a given time. … [Read more...]
