Market Segmentation Theory or Preferred Habitat Theory

Market Segmentation Theory or Preferred Habitat Theory Theory of biased expectations that holds that the yield curve shape depends on demand and supply for securities of different maturity periods. … [Read more...]

Market Surveillance

Market Surveillance NASDAQ division in charge of investigating and averting unfair, manipulative, or unlawful trading practices on the exchange. … [Read more...]

Market Timer

Market Timer Investment manager who assumes that he/ she can make accurate stock market movement predictions. … [Read more...]

Market Timing

Market Timing Phenomenon where market investment is enhanced on basis of expectations that T-bills will be outperformed by the market. … [Read more...]

Market Timing Costs

Market Timing Costs Costs attributable to other occurrences relevant to the stock, and that arise from fluctuations in price at the point of transaction. … [Read more...]

Market Value

Market Value (1) Value believed to be firm’s worth by its investors. Formula: number of shares outstanding x current market price of a share. (2) The trading price at which the security can be purchased or sold at a given time. … [Read more...]

Market Value Ratios

Market Value Ratios Ratios comparing market price of common stock of a firm to selected items in the financial statement. … [Read more...]

Market Value-Weighted Index

Market Value-Weighted Index Index calculated by taking weighted averages of returns of a specific group of securities. The outstanding market value is used to determine weightage. … [Read more...]

Market versus Quote

Market versus Quote The comparison of last price at which a security traded with the current bid/ask prices. … [Read more...]

Market-Book Ratio

Market-Book Ratio Share price prevailing in the market divided by each share’s book value. … [Read more...]

Market-if-touched (MIT)

Market-if-touched (MIT) An instruction or price order that is executed when specified price levels are met. Price is below market if instruction is to buy and above market if instruction is to sell. … [Read more...]

Marketability

Marketability Presence of an active secondary market for a negotiable security that shows that it can be resold with minimum difficulty. … [Read more...]

Marketed Claims

Marketed Claims Tradable claims that can be transacted in financial markets. For example, claims of bondholders or stock holders. … [Read more...]

Marketplace Price Efficiency

Marketplace Price Efficiency The measurement of influence of available marketplace information on prices of assets. Estimated as the problems arising in earning a greater return through active management than passive management, provided risk and costs associated with strategy and … [Read more...]

Marketweight

Marketweight Credit rating system for instruments yielding fixed-income. This system gives a subjective evaluation of the accuracy of current credit spread to show if an investment is viable. … [Read more...]

Markowitz Diversification

Markowitz Diversification Related: naive diversification. Investment strategy that aims at combining assets in a portfolio based on mathematical models. The goal is to gain maximum returns within given risk levels by identifying suitable assets. … [Read more...]

Markowitz Efficient Frontier

Markowitz Efficient Frontier Graphical representation of Markowitz efficient set of portfolios. Depicts the frontier of the set of portfolios that can yield maximum return for a specific level of risk. Any portfolios above this frontier are unattainable. The Markowitz efficient … [Read more...]

Markowitz Efficient Portfolio

Markowitz Efficient Portfolio Portfolio that matches the best possible return expectation at specific risk level. … [Read more...]

Markowitz Efficient Set of Portfolios

Markowitz Efficient Set of Portfolios Grouping of every efficient portfolio, graphically represented with the Markowitz efficient frontier, giving the collative group that matches a specific risk return requirement. … [Read more...]

Master Limited Partnership (MLP)

Master Limited Partnership (MLP) Limited partnership that is traded publicly. … [Read more...]