Modified Duration Inversely related to percentage change in price on an average for a specific change in yield. Represented as a ratio of Macaulay duration to (1 + y). Here y = the bond yield. … [Read more...]
Modified Pass-Throughs
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Modified Pass-Throughs Related: fully modified pass-throughs. Agency pass-throughs that have some special characteristics. (1) They guarantee interest payments on time, (2) They guarantee principal payments as and when collected, but within a grace period after due date. … [Read more...]
Modigliani and Miller Proposition I
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Modigliani and Miller Proposition I Proposition stating that a business cannot modify the value of its total outstanding securities through modifying capital structure proportions. Also termed as irrelevance proposition, this was stated by Modigliani and Miller. … [Read more...]
Modigliani and Miller Proposition II
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Modigliani and Miller Proposition II Proposition stating that cost of equity is related to the company’s debt equity ratio in the form of a linear function. Concept proposed by Modigliani and Miller. … [Read more...]
Momentum
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Momentum The rate of increase or acceleration in a security's price or volume. Forms the basis of investment strategy for traders. … [Read more...]
Monetary Gold
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Monetary Gold Reserve of gold held as a financial asset with government authorities. … [Read more...]
Monetary Policy
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Monetary Policy Strategies employed and action implemented by Federal Reserve System authorities to control interest rates or influence money supply in the economy. … [Read more...]
Monetary / Non-Monetary Method
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Monetary / Non-Monetary Method Translation method wherein monetary items are translated at prevailing/ current rates. These items include long term debt, cash, accounts payable/ receivable. Non-monetary items are translated at historical rates. These include long-term investments, … [Read more...]
Money Base
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Money Base Total of currency, coins and near money instruments outside the banking system plus deposits and Negotiable order of withdrawal accounts. … [Read more...]
Money Center Banks
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Money Center Banks Financial institutions that primarily use the domestic and worldwide money markets to raise funds. Funds raised from depositors are comparatively less in proportion. … [Read more...]
Money Laundering
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Money Laundering Creation of false trail of legitimate sources to conceal the actual sources of funds arising from illegal activities like drug trafficking. … [Read more...]
Money Management
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Money Management Related: Investment management. Managing a portfolio or pool of funds to achieve specific predetermined investment goals. … [Read more...]
Money Manager
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Money Manager Related: Investment manager. Individual entrusted with managing a pool of funds. … [Read more...]
Money Market
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Money Market Market where transactions involving lending and borrowing for three year periods or less are conducted. Securities may include treasury bills , U.S. government bonds bank or company issued commercial paper. … [Read more...]
Money Market Demand Account
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Money Market Demand Account A kind of account where interest payment is based on those prevailing on short term securities. … [Read more...]
Money Market Fund
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Money Market Fund A fund focusing only on short term securities like commercial paper, bankers' acceptances, government bills and repurchase agreements. The NAV (net asset value) per share is consistently maintained at $1.00. These funds do not have federal insurance. But the … [Read more...]
Money Market Hedge
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Money Market Hedge Borrowing or lending transactions carried out with foreign currencies so that home currency value is established at a specific level in a transaction involving forex. … [Read more...]
Money Market Investor Funding Facility – MMIFF
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Money Market Investor Funding Facility - MMIFF MMIFF was created by Federal Reserve board in 2008 to encourage institutional investors towards longer term investments. It aids provision of liquidity to money market investors. Funding is provided via SPVs (special purpose … [Read more...]
Money Market Notes
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Money Market Notes Issues that are publicly traded and have mortgages and MBSs as collateral. … [Read more...]
Money Purchase Plan
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Money Purchase Plan Also referred to as individual account plan. Defined benefit plan where participant contributes some share and employer makes an equal or unequal contribution simultaneously. … [Read more...]
