| Term | Definition |
|---|---|
| M1 | A measure of the money supply that includes the most liquid forms of money |
| M2 | A broader measure of the money supply that includes M1 plus some less liquid assets |
| M3 | The broadest measure of the money supply |
| M-Pesa | A mobile money transfer service |
| Maastricht Treaty | A treaty that established the European Union |
| Macaulay Duration | A measure of a bond’s interest rate risk |
| Macro Environment | The broad economic, social, and political factors that affect a business |
| Macro Manager | A type of hedge fund manager |
| Macroeconomic Factor | A broad economic factor that affects financial markets |
| Macroeconomics | The study of the economy as a whole |
| Magic Formula Investing | An investment strategy developed by Joel Greenblatt |
| Magna Cum Laude | A Latin term meaning “with great honor” |
| MICR | Magnetic Ink Character Recognition |
| Main Street | Ordinary people and small businesses |
| Maintenance Expenses | Costs associated with maintaining an asset |
| Maintenance Margin | The minimum amount of equity a customer must maintain in a margin account |
| Majority Shareholder | A shareholder who owns more than 50% of a company’s shares |
| Make-or-Buy Decision | A decision about whether to produce a good or service in-house or to outsource it |
| Make to Order (MTO) | A production strategy where goods are produced only after an order is received |
| Make to Stock (MTS) | A production strategy where goods are produced in anticipation of demand |
| Make Whole Call Provision | A provision that requires a bond issuer to pay the present value of all remaining coupon payments when a bond is called |
| Malpractice Insurance | Insurance that covers professionals against malpractice claims |
| Managed Account | A professionally managed investment account |
| Managed Futures | A type of alternative investment |
| Management Buyout (MBO) | The purchase of a company by its management |
| Management by Objectives (MBO) | A management technique that involves setting specific goals |
| Management Discussion and Analysis (MD&A) | A section of a company’s financial report |
| Management Fee | A fee paid to a fund manager |
| Managerial Accounting | The process of providing information to internal users |
| Manufacturer’s Suggested Retail Price (MSRP) | The price suggested by the manufacturer |
| Manufacturing | The process of producing goods |
| Manufacturing Resource Planning | A system for planning and managing manufacturing operations |
| Maquiladora | A manufacturing plant in Mexico that operates under special trade agreements |
| Margin | The amount of equity a customer must deposit in a brokerage account |
| Margin Account | A brokerage account that allows customers to borrow money |
| Margin Call | A demand for more equity in a margin account |
| Margin Debt | Debt incurred to purchase securities on margin |
| Margin Loan Availability | The amount of money that brokers are willing to lend to customers |
| Margin of Safety | The difference between actual or budgeted sales and the break-even point |
| Marginal Analysis | The study of the effects of small changes |
| Marginal Benefits | The additional benefits from consuming one more unit |
| Marginal Cost of Production | The additional cost of producing one more unit |
| Marginal Profit | The additional profit from selling one more unit |
| Marginal Propensity to Consume (MPC) | The proportion of an additional dollar of income that is consumed |
| Marginal Propensity to Import (MPM) | The proportion of an additional dollar of income that is spent on imports |
| Marginal Propensity to Save (MPS) | The proportion of an additional dollar of income that is saved |
| Marginal Rate of Substitution (MRS) | The rate at which a consumer is willing to trade one good for another |
| Marginal Rate of Technical Substitution | The rate at which a firm is willing to trade one input for another |
| Marginal Rate of Transformation | The rate at which one good can be produced by forgoing the production of another good |
| Marginal Revenue (MR) | The additional revenue from selling one more unit |
| Marginal Revenue Product (MRP) | The additional revenue generated by employing one more unit of labor |
| Marginal Social Cost (MSC) | The total cost to society of producing one more unit |
| Marginal Tax Rate | The tax rate on the last dollar of income |
| Marginal Utility | The additional satisfaction from consuming one more unit |
| Marital Property | Property acquired during a marriage |
| Maritime Law | The body of law that governs maritime activities |
| Mark Zuckerberg | Co-founder of Facebook |
| Market | A place where goods or services are bought and sold |
| Market Approach | A method of valuing a business |
| Market Basket | A selection of goods and services used to track inflation |
| Market Breadth | The number of stocks participating in a market move |
| Market Cannibalization | The reduction in sales of one product due to the introduction of a new product |
| Market Capitalization | The total value of a company’s outstanding shares |
| Market Capitalization-to-GDP Ratio | A ratio used to assess whether a stock market is overvalued or undervalued |
| Market Cycles | The periodic ups and downs of the market |
| Market Depth | The ability of a market to absorb large trades without significant price changes |
| Market Dynamics | The forces that influence market prices |
| Market Economy | An economy where prices are determined by supply and demand |
| Market Efficiency | The degree to which market prices reflect all available information |
| Market Exposure | The extent to which a portfolio is exposed to market risk |
| Market Failure | A situation where the market fails to allocate resources efficiently |
| Market Index | A statistical measure of market performance |
| Market Indicators | Statistics used to assess market conditions |
| Market Leader | A company with the largest market share |
| Market Maker | A trader who provides liquidity to the market |
| Market Manipulation | The act of artificially influencing market prices |
| Market Neutral | A strategy that aims to profit from market inefficiencies while minimizing market risk |
| Market-On-Close Order (MOC) | An order to buy or sell a security at the end of the trading day |
| Market Order | An order to buy or sell a security at the best available price |
| Market Orientation | A business philosophy that focuses on meeting customer needs |
| Market Penetration | The extent to which a product or service is being used by its target market |
| Market Portfolio | A portfolio that includes all assets in the market |
| Market Power | The ability of a company to influence market prices |
| Market Price | The current price of a good or service |
| Market Research | The process of gathering information about a market |
| Market Risk | The risk of losses due to market-wide factors |
| Market Risk Premium | The additional return investors expect for taking on market risk |
| Market Saturation | The point at which further sales of a product or service are unlikely |
| Market Segment | A group of customers with similar characteristics |
| Market Segmentation | The process of dividing a market into segments |
| Market Segmentation Theory | A theory about how interest rates are determined |
| Market Sentiment | The overall attitude of investors |
| Market Share | The percentage of sales a company has in a market |
| Market Timing | A strategy of trying to predict market movements |
| Mark to Market (MTM) | An accounting method that values assets at their current market price |
| Market Value | The current value of an asset |
| Market Value Added (MVA) | The difference between the market value of a company and the capital invested in it |
| Market Value of Equity | The total value of a company’s outstanding shares |
| Marketable Securities | Securities that can be easily bought and sold |
| Marketing | The process of promoting and selling goods or services |
| Marketing Campaign | A coordinated set of marketing activities |
| Marketing Mix | The elements of a marketing strategy |
| Marketing Plan | A document that outlines a company’s marketing strategy |
| Marketing Strategy | A plan for achieving marketing objectives |
| Markets in Financial Instruments Directive (MiFID) | A European Union regulation |
| Markup | The difference between the cost of a good or service and its selling price |
| Married Filing Jointly | A tax filing status for married couples |
| Married Filing Separately | A tax filing status for married couples |
| Married Put | An options strategy |
| Martial Law | The imposition of military rule |
| Marxian Economics | An economic theory based on the ideas of Karl Marx |
| Marxism | A political and economic ideology based on the ideas of Karl Marx |
| Mass Customization | The process of producing goods or services to meet individual customer needs |
| Mass Production | The process of producing large quantities of standardized goods |
| Master-Feeder Structure | A type of hedge fund structure |
| Master Limited Partnership (MLP) | A type of partnership that is publicly traded |
| Master of Business Administration (MBA) | A graduate degree in business administration |
| Master of Public Administration (MPA) | A graduate degree in public administration |
| MasterCard | A credit card company |
| Matching Orders | A type of market manipulation |
| Material Participation Tests | Tests used to determine whether a taxpayer materially participates in a business |
| Material Requirements Planning (MRP) | A system for planning and managing manufacturing operations |
| Mature Industry | An industry that has reached a stage of slow growth |
| Term | Definition |
|---|---|
| Maturity | The date when a debt instrument becomes due |
| Maturity Date | The date when a debt instrument becomes due |
| Max Pain | The price at which the most options contracts expire worthless |
| Maximum Drawdown (MDD) | The largest percentage decline from a peak to a trough in an investment’s value |
| Maximum Foreseeable Loss (MFL) | An estimate of the largest potential loss |
| Maximum Loan Amount | The largest amount of money that can be borrowed |
| McClellan Oscillator | A technical indicator |
| MCF (Measuring Natural Gas) | A unit of measurement for natural gas |
| McKinsey 7S Model | A strategic management framework |
| Mean Reversion | The theory that prices tend to revert to their average |
| Mean-Variance Analysis | A method for constructing efficient portfolios |
| Medallion Signature Guarantee | A guarantee of a signature |
| Media Kit | A collection of information about a company or organization |
| Median | The middle value in a set of data |
| Medicaid | A government health insurance program for low-income individuals |
| Medical Cost Ratio (MCR) | A measure of an insurance company’s profitability |
| Medium of Exchange | Anything that is widely accepted in exchange for goods and services |
| Medium Term Note (MTN) | A debt security with a maturity of one to ten years |
| Melt Up | A rapid increase in asset prices |
| Memorandum of Understanding (MOU) | A non-binding agreement |
| Mental Accounting | The tendency to treat money differently depending on its source or intended use |
| Menu Costs | The costs associated with changing prices |
| Mercantilism | An economic theory that emphasizes exports and accumulation of gold |
| Merchandising | The process of displaying and promoting goods for sale |
| Merchant Bank | A financial institution that provides a range of services to businesses |
| Merchant Discount Rate | The fee charged to merchants for accepting credit cards |
| Merger | The combination of two or more companies |
| Merger Arbitrage | An investment strategy that seeks to profit from mergers |
| Mergers and Acquisitions (M&A) | The process of combining or acquiring companies |
| Merrill Lynch | A financial services company |
| Merton Model | A model for assessing credit risk |
| Metrics | Measures of performance |
| Metropolitan Statistical Area (MSA) | A geographic area with a large population center |
| Mezzanine Debt | Debt that is subordinate to senior debt |
| Mezzanine Financing | Financing that combines debt and equity |
| Michael Bloomberg | Founder of Bloomberg LP |
| Michael Milken | A former financier |
| Michigan Consumer Sentiment Index (MCSI) | A measure of consumer confidence |
| Micro Cap | A company with a very small market capitalization |
| Micro Manager | A manager who closely monitors employees |
| Micro-Investing Platform | A platform that allows users to invest small amounts of money |
| Microcredit | Small loans to individuals or small businesses |
| Microeconomics | The study of individual economic units |
| Microfinance | The provision of financial services to low-income individuals |
| Micromarketing | Marketing tailored to small groups of customers |
| Mid-Cap | A company with a medium market capitalization |
| Mid-Cap Fund | A mutual fund that invests in mid-cap stocks |
| Middle East and North Africa (MENA) | A region in the Middle East and North Africa |
| Middle-Income Countries (MICs) | Countries with middle levels of income |
| Middle Market Firm | A company with revenues between $10 million and $1 billion |
| Middle Office | The part of a financial institution that supports the front office |
| Middleman | A person who facilitates transactions between buyers and sellers |
| Midstream Oil Operations | The transportation and storage of oil and gas |
| MiFID II | A European Union regulation |
| Mill Levy | A tax rate expressed in mills |
| Mill Rate | Same as Mill Levy |
| Millage Rate | Same as Mill Levy |
| Millennial | A person born between 1981 and 1996 |
| Milton Friedman | An American economist |
| Minimum Efficient Scale (MES) | The minimum level of production needed to achieve economies of scale |
| Minimum Lease Payment | The minimum payment required under a lease |
| Minimum Monthly Payment | The minimum payment required on a debt |
| Minimum Wage | The lowest wage that can legally be paid |
| Mining | The process of verifying transactions on a blockchain |
| Minority Interest | A less than 50% ownership stake in a company |
| Minsky Moment | A point in a credit cycle when a speculative boom turns into a bust |
| Misery Index | The sum of the inflation rate and the unemployment rate |
| Misrepresentation | A false statement of fact |
| Mission Statement | A statement of an organization’s purpose |
| Mixed Economic System | An economic system that combines elements of capitalism and socialism |
| Mobile Banking | Banking transactions conducted on a mobile device |
| Mobile Commerce | Commercial transactions conducted on a mobile device |
| Mobile Wallet | A digital wallet on a mobile device |
| Mode | The most frequent value in a set of data |
| Model Risk | The risk of losses due to errors in a financial model |
| Modern Portfolio Theory (MPT) | A theory about how to construct efficient portfolios |
| Modified Accelerated Cost Recovery System (MACRS) | A depreciation method used for tax purposes |
| Modified Accrual Accounting | An accounting method used by governments |
| Modified Adjusted Gross Income (MAGI) | Adjusted gross income with certain modifications |
| Modified Cash Basis | An accounting method that combines elements of cash and accrual accounting |
| Modified Endowment Contract | A life insurance policy that loses some of its tax advantages |
| Modified Dietz Method | A method for calculating portfolio returns |
| Modified Duration | A measure of a bond’s interest rate risk |
| Modified Gross Lease | A lease where the tenant pays some of the operating expenses |
| Modified Internal Rate of Return (MIRR) | A variation of the internal rate of return |
| Modigliani-Miller Theorem (M&M) | A theory about the relationship between capital structure and firm value |
| Modus Operandi | A method of working |
| Mom-and-Pop | A small business |
| Momentum | The speed of price movement |
| Momentum Investing | An investment strategy that capitalizes on momentum |
| Monetarism | An economic theory that emphasizes the role of money supply |
| Monetarist | An advocate of monetarism |
| Monetarist Theory | Same as Monetarism |
| Monetary Aggregates | Measures of the money supply |
| Monetary Base | The sum of currency in circulation and reserves held by commercial banks |
| Monetary Policy | Actions taken by a central bank to manage the money supply and interest rates |
| Monetize | To convert an asset into cash |
| Money | Anything that is widely accepted in exchange for goods and services |
| Money Center Banks | Large banks that deal with other banks and large corporations |
| Money Factor | A measure of the interest rate on a lease |
| Money Flow | The movement of money into or out of a security or market |
| Money Flow Index (MFI) | A technical indicator |
| Money Illusion | The tendency to focus on the nominal value of money rather than its real value |
| Money Laundering | The process of concealing the source of illegally obtained money |
| Money Management | The process of managing investments |
| Money Manager | A professional who manages investments |
| Money Market | The market for short-term debt securities |
| Money Market Account | A type of savings account |
| Money Market Fund | A mutual fund that invests in money market securities |
| Money Market Yield | The annualized return on a money market investment |
| Money Order | A payment instrument |
| Money Purchase Pension Plan | A type of defined contribution plan |
| Money Supply | The total amount of money in circulation |
| Money-Weighted Rate of Return | A method for calculating investment returns |
| Monopolist | A firm with a monopoly |
| Monopolistic Competition | A market structure with many firms selling differentiated products |
| Monopolistic Markets | Markets with monopolistic competition |
| Monopoly | A market structure with a single seller |
| Monopsony | A market structure with a single buyer |
| Monte Carlo Simulation | A statistical method |
| Month-To-Month Tenancy | A tenancy that continues from month to month |
| Monthly Active User (MAU) | A measure of user engagement |
| Moore’s Law | The observation that the number of transistors on a microchip doubles approximately every two years |
| Moral Hazard | The risk that one party will act in a way that harms the other party |
| Moral Suasion | The use of persuasion by a central bank to influence banks |
| Moratorium | A temporary suspension of payments |
| Morbidity Rate | The rate of disease or illness |
| Morning Star | A bullish candlestick pattern |
| Morningstar Inc. | A financial services company |
| Morningstar Risk Rating | A measure of risk |
| Morningstar Sustainability Rating | A measure of sustainability |
| Mortality Table | A table showing the probability of death at different ages |
| Mortgage | A loan secured by real estate |
| Mortgage-Backed Security (MBS) | A security backed by a pool of mortgages |
| Term | Definition |
|---|---|
| Mortgage Banker | A financial institution that originates and sells mortgages |
| Mortgage Bond | A bond secured by a mortgage |
| Mortgage Broker | A person who connects borrowers with lenders |
| Mortgage Forbearance Agreement | An agreement that allows a borrower to temporarily suspend or reduce mortgage payments |
| Mortgage Insurance | Insurance that protects lenders against losses from mortgage defaults |
| Mortgage Originator | Same as Mortgage Banker |
| Mortgage Rate | The interest rate on a mortgage |
| Mortgage Rate Lock Float Down | A provision that allows a borrower to lock in a lower interest rate if rates decline |
| Mortgage Recast | A new amortization schedule for a mortgage |
| Mortgage Servicing Rights (MSR) | The right to service a mortgage |
| Mortgagee | The lender in a mortgage |
| Mortgagor | The borrower in a mortgage |
| Mosaic Theory | An investment strategy that involves piecing together information from various sources |
| Most-Favored-Nation Clause | A clause in a trade agreement |
| Mothballing | The process of keeping an asset in reserve |
| Moving Average (MA) | A technical indicator |
| Moving Average Convergence Divergence (MACD) | A technical indicator |
| MSCI All Country World Index (ACWI) | A global stock market index |
| MSCI Inc. | A financial services company |
| Multi-Asset Class | An investment strategy that invests in multiple asset classes |
| Multi-Factor Model | A financial model that uses multiple factors to explain asset prices |
| Multicollinearity | A statistical problem |
| Multilateral Development Bank (MDB) | A financial institution that provides financing to developing countries |
| Multilateral Investment Guarantee Agency (MIGA) | An agency of the World Bank Group that provides political risk insurance |
| Multilateral Trading Facility (MTF) | A trading platform |
| Multilevel Marketing | A marketing strategy that involves selling products through a network of distributors |
| Multinational Corporation | A corporation that operates in multiple countries |
| Multiple | A valuation metric |
| Multiple Employer Welfare Arrangement (MEWA) | A type of health insurance plan |
| Multiple Linear Regression (MLR) | A statistical method |
| Multiple Listing Service (MLS) | A service that allows real estate brokers to share listings |
| Multiples Approach | A valuation method that uses multiples to estimate value |
| Multiplier | A factor that magnifies the impact of a change |
| Multiplier Effect | The phenomenon where an initial change in spending leads to a larger change in GDP |
| Mumbai Interbank Offered Rate (MIBOR) | A benchmark interest rate in India |
| Municipal Bond | A bond issued by a state or local government |
| Municipal Securities Rulemaking Board (MSRB) | A self-regulatory organization for the municipal securities market |
| Murabaha | An Islamic finance contract |
| Musharakah | An Islamic finance contract |
| Mutual Company | A company owned by its policyholders or members |
| Mutual Fund | A type of investment company |
| Mutual Insurance Company | An insurance company owned by its policyholders |
| Mutually Exclusive | Two events that cannot occur at the same time |