M banking is the use of a smartphone or other cellular phone to conduct tasks such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM while away from...

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A ma and pa shop is a family-owned independent business. For example, franchises and big-box stores such as Target and Wal-Mart are not ma and pa shops. However, the small store down the st...

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Companies adopt a macaroni defense by issuing bonds that are redeemable at a high price in the event of a change in control. For example, let's assume that Company ABC wants to buy Company XYZ. C...

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The Macaulay duration (named after Frederick Macaulay, an economist who developed the concept in 1938) is a measure of a bond's sensitivity to interest rate changes. Technically, duration is the w...

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Macro accounting, also called national accounting, is a method of calculating the economic activity of a country or region. In the United States, federal government agencies typically use macro accou...

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A macro environment is a wide, broad set of economic conditions rather than the conditions in a specific sector or industry within an economy. The macro environment in the American economy, for examp...

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Macro risk is the risk that the political activity in a country will affect the operations of foreign companies that do business in that country. For example, let's say the government of the coun...

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A macroeconomic factor is a characteristic, trend or condition that comes from or applies to a broad aspect of an economy rather than a certain population. Common macroeconomic factors include gross ...

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Macroeconomics involves the study of aggregate factors such as employment, inflation, and gross domestic product, and evaluating how they influence the economy as a whole. The Great Depression and it...

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Macromarketing describes how marketing affects an entire society's demand for goods and services. In many first-world countries, marketing is not just another occupation. It is woven into the fab...

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Macroprudential analysis is analysis of the stability of an economy's financial institutions. In the United States, stress tests are the most common example of macroprudential analysis. In that a...

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In the business world, a mad hatter is a leader, usually a CEO, who makes unusual or impulsive decisions. In Lewis Carroll's book Alice's Adventures in Wonderland, the main character, Alice, ...

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Made to Order (MTO) is a production and inventory strategy in which companies manufacture products or provide services according to each customer's specifications rather than according to a homoge...

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Made to Stock (MTS) is a production and inventory strategy in which companies manufacture products or provide services according to their forecast of customer demand. Let's say Company XYZ produc...

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Magna cum laude is Latin for with great honor. Let's say John Doe is about to graduate college. He has a very high grade point average and has earned several awards from the finance departm...

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A magnet employer is an employer to which people are attracted or especially interested in working for. For example, let's say Company XYZ is located in Anywhere, USA. It routinely appears on lists o...

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In the tax world, a main home is where a taxpayer has lived for most of the tax year or is the only home the taxpayer owns. For example, let's assume John Doe buys a house in Austin, Texas, for $...

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Main Street refers collectively to members of the general population who invest in the capital markets.Individuals and businesses that do not work for financial and investment companies are considered...

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A maintenance bond is a surety bond for construction projects. For example, let's say Company XYZ is a contracting company hired to build the new ABC office building. It oversees all the co...

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Maintenance expenses are the costs associated with keeping an asset in working order and good condition. For example, let's assume that Company XYZ is a restaurant chain. Its regular maintenance ...

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A maintenance margin is a limit after which a brokerage firm can make a margin call. A margin account is a loan from a brokerage firm. The loan proceeds are used to make an investment. L...

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A major downtrend, or bear market, is when financial assets and markets -- as with the broader economy -- fall steadily for an extended period of time. A major downtrend is when each succes...

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Major pairs are the four pairs of currencies that are most commonly traded in the foreign exchange markets. The major pairs are Euro/U.S. Dollar (EUR/USD); U.S. Dollar/Japanese Yen (USD/JPY); U.S. Do...

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A major uptrend, or bull market, is when financial assets and markets -- as with the broader economy -- move in an upward direction for extended periods of time. A major uptren...

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A majority shareholder refers to a shareholder who owns over 50% of stock in a company.A single shareholder who maintains ownership of more than 50% of a company's outstanding stock qualifies as a...

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Making a market is a process whereby a person or brokerage house that is always prepared to buy and sell securities in order to provide liquidity to the markets. In order to make a market, a brokerag...

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Make to Assemble (MTA) is a manufacturing strategy whereby the manufacturer creates or obtains all of the components of its products but does not assemble the product until a customer places an order....

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A make-whole call provision is a call provision attached to a bond, whereby the borrower must make a payment to the lender in an amount equal to the net present value of the coupon payments that the l...

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Making Home Affordable is a government program designed to help homeowners avoid foreclosure. The Making Home Affordable program is actually a collection of several programs: Home Aff...

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Malfeasance is the legal term for intentionally doing something that is illegal. Let's say John Doe is Jane Smith's broker. John really wants to keep Jane Smith as a client, and he is in char...

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Malpractice insurance pays for the mistakes health care professionals make due to negligence or harmful decisions. The premium can be very high, and these premiums are a controversial cost of doing bu...

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A man-year is a measure of how much work one person does in a calendar year. For example, let's say the Facilities Maintenance Department of the University of XYZ bills the other departments of t...

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A managed account is an investment account in which a financial advisor or other kind of money manager is responsible for managing in the best interests of a client or beneficiary. Let's say John...

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Managed currency is the opposite of currency whose exchange rate is determined by the amount of supply and demand for the currency in the global marketplace. Most currencies, however, are managed by t...

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A managed distribution policy is an issuer's commitment to make a fixed periodic dividend payment. This means investors can buy shares of a security with the confidence that they will receive a re...

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A managed futures account is an alternative asset created and maintained by a commodity trading advisor (CTA). The account invests in commodity futures contracts.  When you buy a managed futures...

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A managed futures fund is an alternative asset created and maintained by a commodity trading advisor (CTA). The fund invests in commodity futures contracts.  When you buy a managed futures fund, ...

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A management audit is an assessment of how an organization applies its resources and its strategies. Let's say that Company XYZ wants to conduct a management audit. It decides that good man...

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A management buyout (MBO) occurs when the current management of a company acquires a controlling interest or the entire interest in a company from existing shareholders.For example, Company XYZ is a p...

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In the financial world, a management discussion and analysis (MD&A) is a written explanation of a public company's performance for the reporting period. The explanation appears in the company&...

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A mancession is a situation in which the employment rate of men is lower than the employment rate for women. Let's say the employment rate for women is 95%. Meanwhile, the employment rate f...

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Mandatory Convertibles are hybrid securities (bonds linked to equities) that automatically convert to equity (stock) at a pre-determined date. Common names are PERCS (Preferred Equity Redemption Cumul...

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A manufacturer's suggested retail price (MSRP) is a price that a product manufacturer tells retailers to charge for their products. Let's say Company XYZ manufactures the "Hot Stuff" line of men's cl...

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The term margin has two main definitions. The first refers to the ratio of profit to revenue. The second refers to money borrowed from a brokerage firm in order to leverage an investment. ...

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A margin account is a brokerage account that allows investors to borrow money (leverage) from the broker in order to purchase securities.Let's assume you have $2,500 and Company XYZ trades at $5 a...

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A margin call is a brokerage firm's demand that a margin-account client deposit securities or cash into their account in order to bring the account balance up to the minimum maintenance margin req...

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Margin debt is debt obtained from buying on margin. Buying on margin refers to borrowing from a brokerage firm (through a margin account) to make an investment. Let's assume you wan...

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Margin of safety is the amount by which a company's shares are trading below their intrinsic value.The formula for margin of safety is:Margin of Safety = 1 - Stock's Current Price / Stock'...

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Marginal tax rate is the rate at which an additional dollar of taxable income would be taxed. It is part of a progressive tax system, which applies different tax rates to different levels of income. A...

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The marital deduction refers to the deduction the IRS allows for a taxpayer to transfer some or all of his assets tax free to his spouse prior to the calculation of estate tax owed by his estate.The m...

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Marital property is property owned by a married couple. Let's say John Doe and Jane Smith get married. On the day of the wedding, John owns a 1988 Camaro, 10 sets of speakers, and his cloth...

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Mark-to-management is an accounting practice that prices an asset based on what management estimates its potential value to be under normal market conditions. It is the opposite of mark-to-market.Mark...

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Mark-to-market (MTM) is an accounting method that records the value of an asset according to its current market price. For example, the stocks you hold in your brokerage account are marked-to-market ...

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Mark-to-market losses are losses in an asset's value caused solely by a decline in market price.Mark-to-market losses appear when an asset is priced according to a mark-to-market (MTM) accounting ...

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Mark-to-model is an accounting method where asset prices are assigned using the results of a financial model.The mark-to-model pricing method puts a value on assets based on the outcome of a financial...

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Markdown refers to the negative spread between the price a broker charges a client for a security and the highest price at which that security is sold between brokers. It is the opposite of markup. I...

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A market is a location where buyers and sellers meet to exchange goods and services at prices determined by the forces of supply and demand. A market may be a physical location or a virtual one over ...

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Market arbitrage is a trading strategy whereby a trader sells a security in one market and buys the same security in another market.The practice of market arbitrage is based on assuming that an asset ...

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A market average is the general level of prices in a stock market as expressed by a basket of frequently traded stocks.A market average, best exemplified by the Dow Jones Industrial Average (DJIA) and...

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A market basket is a group of items that simulate the overall price movements in a market.At an economic level, a market basket is a permanent set of goods and services that are bought and sold as sta...

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Market breadth is a ratio that compares the total number of rising stocks to the total number of falling stocks. Market breadth, or stock-market breadth, is used in technical analysis to gauge the gen...

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Market cannibalization refers to a reduction in sales volume or market share of a product as a result of the introduction of a new product made by the same company.  Market Cannibalization is al...

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Market capitalization refers to the value of a company's outstanding shares.  The formula for market capitalization is: Market Capitalization = Current Stock Price x Shares Outstand...

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The market capitalization rule is a regulation that places a floor on the total value of a company's stock for 30 consecutive days.The market capitalization rule was established by the New York St...

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The market conversion price is the price at which a convertible security is exchanged for common stock.Convertible securities (for example, convertible bonds and convertible preferred stocks) allow ho...

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A market correction refers to a price decline of at least 10% of any security or market index following a temporary upswing in market prices.The stock market's value is always rising and falling. ...

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Market cycles are the periods of growth and decline in a market, sector or industry.In a quantitative sense, market cycles are visible in price movements that rise, fall, and return to their point of ...

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Market depth refers to a security's ability to tolerate the execution of large market orders without having a large effect on the security's price.Also called depth of market, market depth mea...

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Market discipline refers to the obligation by banks and financial institutions to manage their stakeholders' risk in the course of their day-to-day operations.Banks and other financial institution...

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Market discount is the loss in market value sustained by a bond following an increase in interest rates.In the secondary bond market, bond prices move inversely to interest rates. That is, an increase...

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A market disruption is a sharp, rapid weakening of market performance in response to external forces.A market disruption often occurs as a result of an event or group of events that are widely perceiv...

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A market distortion occurs as a result of a government's involvement in a market through monetary or fiscal policies.Governments frequently intervene in a country's economy and implement polic...

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Market dynamics are the interaction of supply and demand as the basis for setting prices.A fundamental concept of macroeconomics is the relationship between supply and demand as the principle forces b...

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A market economy is structured to allow market forces to determine prices with little or no government involvement.In theory, a market economy's functions are based on fluctuations in supply and d...

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The strong form of market efficiency essentially proclaims that it is impossible to consistently outperform the market, particularly in the short term, because it is impossible to predict stock prices...

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Market exposure is the degree to which a portfolio invests in a particular stock or market sector.An investment portfolio is made up of several types of assets (for example, stocks, bonds, real estate...

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A market failure occurs when the supply of a good or service is insufficient to meet demand. This results in an inefficient distribution of resources among market participants.Under free market condit...

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A market identifier code (MIC) is a four-letter or digit abbreviation that represents a specific stock market.MICs always begins with the letter "X," followed by a combination of three additio...

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Market if touched (MIT) is an order that will be executed only if a security reaches (touches) a specific price.Investors place an MIT order with a broker if they wish to delay buying or selling a sec...

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A market index is a metric that tracks the performance of a group of stocks. Some indices are designed to indicate the overall performance of the market, while others follow a particular sector.There ...

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A market index target-term security (MITTS) is a debt security that offers potential upside based on gains in a market index while limiting downside losses by guaranteeing the initial investment w...

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Market indicators are quantitative factors that predict the future behavior of market indices.Market indicators are used in technical analysis to forecast market trends. Market indicators are ratios a...

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Market jitters refers to apprehension among buyers and sellers resulting in choppy and unpredictable market performance.Unfavorable news regarding economic indicators, earnings reports, interest rates...

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A market letter is a publication that offers information and advice about specific market sectors and types of securities.Market letters offer advice to investors interested in investing in a particul...

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A market maker is a person or brokerage house that is always prepared to buy and sell securities in order to provide liquidity to the markets.By holding a disproportionately large number of a given se...

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A market maker spread is the difference between the bid and ask prices offered by a market maker.The market maker spread is calculated by subtracting a market maker's ask price (price at which he/...

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A market maven is a person who keeps abreast of market news and is a successful investor.A market maven is someone who conscientiously absorbs information and news about the financial markets on a con...

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Market momentum is the perceived strength of a positive or negative change in market prices.Market momentum is the ability of a market to sustain an increase or decrease in prices. Market momentum is ...

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Market neutral refers to an investing strategy that seeks to generate similar returns regardless of the market climate.An investor or fund manager takes a market neutral position by obtaining both lon...

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A market neutral fund is a mutual fund whose goal is consistent returns in any market climate.A market neutral fund namely generally holds both short and long share positions in specific stocks and it...

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Market on close (MOC) is a market order that is executed at the latest possible time during a trading session.When a trader receives an MOC from a client, that trader may enter the order as late as he...

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A market order is an order to trade a stock at the current market price. If you do not give your broker additional instructions, the trade will automatically be entered as a market order. When ...

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Market orientation focuses on providing products that respond to both the needs and wants of a target audience.A company using market orientation invests time researching current trends in a given mar...

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A market out clause is a provision that allows an underwriter to withdraw from a stock underwriting contract.When an investment bank serves as an underwriter for an initial public offering (IPO), it h...

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Market overhang refers to a decline in a stock's price driven by expectations that the price will experience further declines.Market overhang is a phenomenon whereby investors put off buying share...

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Market penetration is the percentage of a target market that consumes a product or service. Market penetration can also be a measure of one company's sales as a percentage of all sales for a product. ...

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"Market perform" is an expression indicating that a security experiences returns similar to the overall market. A security that investors and analysts describe as "market perform" closely follows the...

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The Market Performance Committee is responsible for maintaining effective and organized trading operations on the New York Stock Exchange (NYSE).The Market Performance Committee consists of several me...

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Market power refers to a single company's ability to control the market price of a good or service.The macroeconomic concept of perfect competition assumes that no one producer can set a price for...

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Market price is the price of an asset or product as determined by supply and demand.In the broadest sense, an item's market price lies at the point of intersection between the available supply of ...

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A market proxy is a variable that theoretically simulates the behavior of the overall market.Analysts and investors use market proxies as part of statistical analyses and portfolio modeling. Analysts ...

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Market psychology refers to the manner in which the market reflects its participants' collective emotional state.Peoples' perceptions of the market directly impact price movements and trends. ...

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Market risk is the fluctuation of returns caused by the macroeconomic factors that affect all risky assets.Market Risk is also referred to as systematic risk or non-diversifiable risk.Market...

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Market saturation is the maximum sales volume for a product or service under current market conditions assuming a constant level of demand.When the number of units of a given product or service has le...

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A market segment is a discrete group of individuals who bear a number of similar characteristics. A market segment is characterized as a homogeneous population within a given market whose members dis...

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Market segmentation is a marketing strategy that separates individuals in a market into discrete groups based on certain criteria.Market segmentation is predicated on the notion that a given product o...

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Market segmentation theory posits that the behavior of short-term and long-term interest rates are mutually exclusive.Market segmentation theory suggests that the behavior of short-term interest rates...

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Market sentiment is the general feeling about the climate of the market as expressed by the direction of market prices.Market sentiment, as the name suggests, describes the outlook of investors in a m...

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Market share refers to a company's portion of sales within the entire market in which it operates. This metric indicates a company's size within its market.The formula for market share is:Market Share...

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A market standoff agreement restricts the ability of insiders to sell their holdings following an initial public offering (IPO).When a company issues new shares of stock, it contracts a brokerage hous...

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A market strategist is an individual who makes investment recommendations based on available market information.A market strategist tries to predict the future market climate as a pretext for buying a...

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Market Surveillance is a unit of the NASDAQ stock exchange whose function is to ensure that all trading is conducted in a compliant manner.The Market Surveillance unit of the NASDAQ stock exchange is ...

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A market swoon is an abrupt fall in the value of a market index. Derived from a term meaning "to faint" or "pass out," market swoon is a vernacular expression that describes a sudden and wi...

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The Market Technicians Association (MTA) is a professional association for technical analysts. The MTA is a nonprofit association that fosters an environment of ethics and professionalism a...

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Market timing is the practice of buying and selling securities based on economic trends, corporate information, and market factors. Market timing can also be referred to as tactical asset al...

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Market value refers to the current or most recently-quoted price for a market-traded security. It can also refer to the most probable price an asset, like a house, would fetch on the open market....

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Market Value Added is the difference between the capital contributed to the company by bondholders and shareholders and the final market value of the product. The formula used to find market val...

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Market value of equity is the total market value of all of a company's outstanding shares.A company's market value of equity -- also known as market capitalization -- is the current market pri...

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Market versus quote (MVQ) refers to the most recent market price at which a security was either bought or sold with regard to the latest bid and ask prices. MVQ is the difference between the last mar...

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A market-linked certificate of deposit (CD), also called an indexed or equity-linked CD, is a type of CD where the rate of return is based on either a market index, a basket of equities, or a combinat...

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Marketable securities are financial instruments that can be sold or converted into cash (at reasonable value) within one year. They are highly liquid investments that are generally issued by businesse...

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Marketing mix refers to the combination of elements used to promote products or services. These elements vary, based upon the analysis of the four main factors that influence marketing, which are ...

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The Markowitz efficient set, also called the efficient frontier, is a mathematical concept that reflects the combinations or portfolios that generate the maximum expected return for various levels of ...

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The marriage tax, also known as the "marriage penalty," refers to the higher taxes a couple pays when they file a joint tax return versus the amount a couple pays when filing two separate tax ret...

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Deciding to file jointly or separately is a personal decision for couples, and deciding which one is optimal depends on the couple's income and deductions. It is important to note that from a lega...

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A master limited partnership (MLP) is a publicly traded limited partnership. shares of ownership are referred to as units. MLPs generally operate in the natural resource, financial services, and real ...

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A Master of Business Administration (MBA) is a graduate degree in business. An MBA typically involves the study of accounting, financial markets and instruments, corporate strategy, negotiation, busi...

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A Master of Public Administration (MPA) is a graduate degree in public administration. An MPA typically involves the study of management, government, public policy, ethics and law. Most MPA programs ...

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The term matching contribution refers to a matching dollar amount contributed by an employer to the retirement savings account of an employee who makes a similar contribution, usually to a&#...

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Material insider information is material, nonpublic information about a security or its issuer. Information is material if it might reasonably influence the users of the issuer’s financial state...

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Also known as a kangaroo bond, a Matilda bond is a bond issue in the Australian market by a non-Australian company.   Let's say Company XYZ is headquartered in San Diego. It specializes in r...

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A mature industry has passed the rapid growth stage and has an established pattern of market share, earnings, and profits.All industries pass through various stages of growth, stability and decline. T...

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Maturity is the date on which a bond or preferred stock issuer must repay the original principal borrowed from a bondholder or shareholder. Let's assume that on January 1, 2000, you purchased an ...

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Maturity date refers to the date on which the principal and interest associated with a debt security must be repaid to the holder in its entirety.Debt instruments such as bonds, CDs, and commercial pa...

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The McClellan Oscillator was first designed by Sherman and Marian McClellan in 1969. It is an excellent tool for determining the overbought or oversold condition of the stock market.The McClellan Osci...

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This term is a play on the word "McDonalds," which is a global fast-food restaurant chain whose food is usually so consistent that an item from one restaurant is indistinguishable from the sam...

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The mean is the average of a series of numbers.  The formula for calculating a mean is: Mean = (X1 + X2 + X3 + ... +XN) / N where X1, X2, X3, XN are the values of the observation...

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Mean reversion is the theory that interest rates, security prices, or various economic indicators will, over time, return to their long-term averages after a significant short-term move.Mean reversion...

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The measuring principle allows traders to set a specific minimum price target when trading a stock. This technique works with any well-defined technical analysis pattern, such as a head and shoulders,...

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Medicaid is a U.S. government program that provides free or low-cost health insurance coverage for low-income people. Enacted in 1965, Medicaid is funded by states, which receive matching f...

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Medicare is the United States federal government health insurance program for Americans who are 65 years of age and older.When a U.S. citizen turns 65 years old, he may be eligible for Medicare benefi...

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Mega cap is a designation for any company with a market capitalization in excess of $200 billion. The largest companies in the world are referred to as mega caps because of their relative market size...

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A merchant bank is a financial institution that engages in underwriting and business loans, catering primarily to the needs of large enterprises and high net worth individuals. In the British market, ...

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A merger is a corporate strategy of combining different companies into a single company in order to enhance the financial and operational strengths of both organizations.   A merger usually invo...

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Mergers & acquisitions (M&A) refer to the management, financing, and strategy involved with buying, selling, and combining companies. A merger or an acquisition usually starts out with a seri...

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Coined the "Junk Bond King" during the 1980s, Michael Milken was instrumental in engineering a lucrative junk-bond market before being indicted on numerous counts of securities fraud. After se...

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Generally speaking, a micro cap is a company worth between $50 million and $300 million. A company's market capitalization is the market value of all the company's stock.  It is calculat...

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A mid cap is generally described as a company with a market capitalization between $2 billion and $10 billion. Market capitalization is a measure of the market value of a company. If the market ...

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The term mileage allowance refers to a variety of travel allowances allowed by the IRS at a specific rate per mile traveled while on business or for other purposes recognized by the IRS.For an individ...

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"Mine" and "yours" are colloquial references to buy and sell transactions. Buy and sell trades are a cornerstone of the capital market. Traders use the terms "mine" and "yours" to indicate a desire t...

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Mineral rights are a landowner's rights regarding natural resources located on his or her land.When an individual buys or owns a piece of land, there is the possibility that the land may contain v...

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Mini-sized Dow options are leveraged option contracts that use the Dow Jones Industrial Average as the underlying asset.Bought and sold on the Chicago Board of Trade (CBOT), mini-sized Dow options hav...

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A mini-tender is an offer from an outside buyer for up to 5% of a company's stock. In a traditional tender offer, a company offers to repurchase shares of stock from its investors at a certain price ...

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Minimum investment is the least amount of money an investor must invest to take part in a specific investment. Many types of investments have a minimum investment, including mutual funds, certificates...

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Minimum lease payments are the lowest total amount that a renter can expect to pay during the term of a lease.When a landlord contracts a renter, the renter agrees to pay the landlord a specific perio...

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A minimum price contract is a futures contract with a price floor. A minimum price contract has a provision that places a lower limit on the price of a futures contract's underlying asset. ...

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Minimum wage is the lowest hourly amount an employer may legally pay an employee. In the United States, the amount varies from state to state. If an employer compensates employees on an hourly basis,...

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Minimum-interest rules are federal regulations requiring that all loans bear interest.Many companies and individuals make loans. These loans can occur in any amount and carry a range of repayment term...

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A minor downtrend is a corrective movement in the market -- lasting less than three weeks -- that goes against the direction of a secondary uptrend.The minor trend is the last of the three trend types...

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A minor uptrend is a corrective movement in the market -- lasting less than three weeks – that goes against the direction of a secondary downtrend.The minor trend is the last of the three trend ...

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A Minsky moment refers to a sharp decline in prevailing market sentiment and economic productivity after a long period of widespread optimism.Times of robust economic growth, like that experienced by ...

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Also known as a downtick, a minus tick occurs when a security sells at a price less than the preceding sale. A minus tick is the opposite of an uptick. For example, if there is a trade for XYZ Compan...

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Mobile banking refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer, such as monitoring account balances, transferring funds be...

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Mobile phone banking is the use of a smartphone or other cellular device to accomplish tasks such as checking account balances, transferring funds between accounts, bill payment and finding an ATM whi...

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A "mom and pop" business is a colloquial reference to a small, independently owned and operated business with few employees and relatively low sales volume.   "Mom and pop" inve...

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A momentum fund invests in companies with a trend of positive earnings or price, expecting a further increase in the price of the stock. Momentum funds evaluate the trends for individual companies in...

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The Monday effect predicts that performance in equity markets will reflect the trends that were influencing the market toward the end of trading the previous Friday.The reasons for the Monday effect a...

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Monetarism is a well-known macroeconomic school of thought developed by Milton Friedman. The Great Depression and its resulting high unemployment greatly influenced the development of macroeconomics. ...

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Monetary policy is the means by which the Federal Reserve manipulates the U.S. money supply in order to influence the U.S. economy's overall direction, particularly in the areas of employment, pro...

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To "monetize" something is to convert non-revenue generating assets into sources of revenue. In economic terms, monetize means to convert any event, object or transaction into a form of curr...

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Money is a medium of exchange for goods or services within an economy.Philosophically, anything can be money, but coins and paper notes are the most generally accepted forms. In most cases, each count...

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Money factor represents the interest you pay when you lease a car. It is included in your monthly lease payment. The money factor is most often expressed in a lease agreement as a very smal...

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A money manager is an individual responsible for managing an investment portfolio, providing investment advice and planning portfolio strategies.A money manager buys and sells securities in a portfoli...

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Money market accounts are a type of savings account that can be opened at any bank or credit union. Money market accounts usually offer higher interest rates than checking accounts and also allow ...

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A money market fund is a type of mutual fund that invests in high quality, short-term debt securities. Money market funds are characterized by high liquidity, meaning they can be readily converted...

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Money market accounts (also known as high-yield savings accounts) offer a safe way to earn returns on your money while still keeping access to the funds. The returns you earn are based on the mone...

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The money market yield is the interest rate earned by investing in highly liquid and short-term securities. It is calculated by adjusting the holding period to its bank year (360 days) equivale...

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A monopoly is a market environment where there is only one provider of a certain economic good or service.For a true monopoly to be in effect, each of the following characteristics would typically be ...

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Moody's Corporation (NYSE:MCO) is a publicly traded financial services company. Moody's Corporation operates two segments: Moody's Investor Service and Moody's Analytics. Moody's...

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Moore's law describes the computing hardware trend that transistors on an integrated circuit will double every two years.In 1965, Gordon E. Moore, the co-founder of Intel published a paper predict...

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The Morningstar risk rating is Morningstar's evaluation of a mutual fund's level of risk.The mutual fund ratings agency Morningstar ascribes a risk rating to each fund it covers. This rating i...

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Homeownership is a cornerstone of the American Dream. A home is a valuable asset for most people, and mortgages (or home loans) make buying one possible for many Americans. A mortgage is a loan for w...

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A mortgage accelerator is a type of checking account that allows a borrower to repay a mortgage more quickly using the balance of monthly paychecks as opposed to recurring monthly payments. Common in...

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Mortgage allocations refer to the specific mortgage information given to an MBS buyer by an MBS seller.Mortgage-backed securities (MBS) trade in the secondary market as to-be-announced trades. This me...

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A mortgage application is a document that a prospective property buyer submits to a lender to secure a mortgage. The lender must approve the application before any money is lent. People may fill out ...

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A mortgage banker is a person or entity who lends mortgages. A mortgage banker may be a sole agent or larger institution that originates mortgages to property buyers in exchange for a commi...

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The Mortgage Bankers Association (MBA) is a professional organization that represents the property finance industry in the United States. The Mortgage Bankers Association facilitates communication am...

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A mortgage bond uses a mortgaged property as collateral. A mortgage bond is collateralized by one or several mortgaged properties. In case of default, the mortgaged properties may be sold t...

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A mortgage broker is an agent who connects property buyers with mortgage lenders. A mortgage broker acts as a professional intermediary on a property buyer's behalf. A mortgage broker collects the pr...

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A mortgage cash flow obligation (MCFO) is a debt security that uses payments on a series of mortgages to fund principal and interest payments to MCFO holders. An MCFO pays interest and principal paym...

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Mortgage credit certificates (MCC) are issued by state or local governments and allow some taxpayers to receive a tax credit for the interest paid on a mortgage.A borrower pays a specific amount of in...

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A mortgage equity withdrawal (MEW) is a loan that uses the value of a mortgaged property as collateral. When a property is worth more than is owed on it, it has positive equity. If this occurs, the e...

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Mortgage excess servicing is the percentage remainder of the annual yield on a mortgage-backed security (MBS) once it has been allocated between the holder, the servicer, and the underwriter.The annua...

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Mortgage fallout is the percentage of an originator's mortgages that fail to close.A mortgage originator maintains a number of clients for whom it secures mortgages at competitive rates. To avoid ...

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A mortgage forbearance agreement is a contractual arrangement between a mortgage lender and a borrower to help the borrower catch up on payments when he/she is behind schedule. A borrower makes month...

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Mortgage fraud refers to an applicant's untruthful representation of information on a mortgage application. Mortgage applications ask for a variety of details concerning an applicant's financial posi...

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Mortgage insurance is insurance for lenders that covers losses resulting from borrower default. Mortgage lenders assume a high degree of risk in connection with home loans. For this reason, lenders f...

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Mortgage interest is the compensation a borrower pays a lender for money used to purchase property. Mortgage interest is the percentage charged on a mortgage that must be paid in addition to the prin...

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A mortgage interest deduction allows mortgage borrowers to reduce their income tax liability by listing the amount of mortgage interest paid as an itemized deduction. Each year, a mortgage borrower p...

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Mortgage life insurance is an insurance policy which fully repays the balance of a mortgage in the event the borrower dies. Mortgages have long-term horizons -- usually 30 years. Given such a substan...

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A mortgage originator is an individual or institution that collaborates with the borrower to complete a mortgage transaction.Mortgage originators facilitate the mortgage application process from the t...

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Mortgage points (also called interest rate points or discount points) are fees you can pay to a lender at closing to lower your mortgage's interest rate -- or annual percentage rate (APR). Th...

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A mortgage pool is a group of mortgages in a mortgage-backed security (MBS).Once a lender completes a mortgage transaction, it generally sells the mortgage to another entity. The entities that buy mor...

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A mortgage putback is a mandatory buyback of a mortgage by its original lender.Once a lender completes a mortgage, the lender often sells it to another investor in the secondary mortgage market. Under...

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A mortgage rate is the rate of interest a borrower pays on his or her mortgage. Mortgage rates can be either fixed or variable. The terms and conditions related to the mortgage rate are outlined in d...

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A mortgage rate lock is the term in a mortgage contract that stipulates the rate the borrower will pay for the entire duration of the mortgage. When a mortgage originator finds a competitive rate for...

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A mortgage rate lock deposit is a sum of money that a borrower must pay the lender to lock in a specific interest rate until a borrower's mortgage is approved and given out. When a mortgage originato...

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A mortgage rate lock float down is a provision that allows a borrower to obtain a lower rate if interest rates decline during the process of applying for a mortgage. Lenders usually allow those apply...

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Mortgage real estate investment trusts (mREITs) invest in residential mortgages that have been bundled together into securities called mortgage-backed securities (MBS) Unlike a regular real...

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Mortgage servicing rights (MSR) is an arrangement by which a third party promises to collect and disseminate mortgage payments in exchange for a fee. Mortgage payments are processed continually over ...

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A mortgage short sale is the sale of a mortgaged property for less than the remaining value of the mortgage itself. In a weak housing market, it is common for the outstanding mortgage balance on a pr...

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Mortgage-backed securities (MBS) are securities that represent an interest in a pool of mortgage loans.To understand how MBS work, it's important to understand how they're created. Let's a...

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A mortgagee is a lender in a mortgage, usually a bank, credit union, or other lending institution. A mortgagee lends money to a borrower for the purpose of purchasing real estate (usually a house) in ...

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In the finance world, the mosaic theory refers to a research approach whereby the analyst arrives at a conclusion by piecing together bits of publicly available information. For example, let's as...

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The moving average is a popular technical indicator which investors use to analyze price trends. It is simply a security's average closing price over the last specified number of days.Some of the ...

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Moving Average Convergence Divergence, or MACD (pronounced "Mack-Dee") is a technical analysis indicator developed by famous market technician Gerald Appel.  The MACD is used by trader...

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Mrs. Watanabe, also referred to as "Japanese Housewives," is a slang term for small, retail investors in Japan. Typically, Mrs. Watanabe traders are indeed women, and in the early 2000s they began tr...

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A multiple is a relative valuation metric used to estimate the value of a stock. Let's look at an example to illustrate the concept. Assume that Big Store's stock is trading at $14 and the c...

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A municipal bond, commonly referred to as a "muni" bond, is a debt security issued by a state or local government. The purchaser of a municipal bond is effectively loaning money to a govern...

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A municipal bond fund is a mutual fund that invests primarily in securities issued by municipalities. Municipal bonds are issued by local or state agencies to raise money for infrastructure proje...

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Municipal investment trusts (MITs) are entities that hold a stake in numerous municipal bonds and then sell shares to the public that represent an interest in those bonds. When the municipal bonds the...

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The Municipal Securities Rulemaking Board (MSRB) regulates municipal bond underwriters and dealers in an attempt to prevent fraud and manipulation in the issuance and trading of municipal bonds. Cong...

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Mutual funds are open-ended investment companies that pool investors' money into a fund operated by a portfolio manager. This manager then turns around and invests this large pool of shareholder m...

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A mutual savings bank (MSB) is a type of financial institution that functions much like a bank, but with a different ownership structure. Instead of shareholders owning marketable shares, a mutual sav...

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