Multiple Rates of Return Arises when IRR method is used in relation to a project wherein positive cash flows are followed by negative cash flows. Denotes the occurrence of more than one rate of return for one project with differences in returns as and when cash flow sign changes. … [Read more...]
Multiple Regression
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Multiple Regression Predicted relation between different explanatory variables and a single dependent variable. … [Read more...]
Multiples Approach
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Multiples Approach Theory of valuation stating that similar assets are traded at similar prices. Assumption is that a ratio relating value to some firm dependent variable is consistent across similar businesses. … [Read more...]
Multiple-Discriminant Analysis (MDA)
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Multiple-Discriminant Analysis (MDA) Technique used in statistical analysis to use observed characteristics to distinguish between two groups. … [Read more...]
Multirule System
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Multirule System Combination of mechanical rules in a technical trading strategy. Example, CRISMA Trading System of Pruitt and White (stands for cumulative volume, relative strength, moving average) … [Read more...]
Multi-Option Financing Facility
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Multi-Option Financing Facility Assured credit line that is syndicated and also has options attached to it. … [Read more...]
Municipal Bond
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Municipal Bond Muni bonds or municipals are offered by State and local governments. The funds thus collected are used for public service projects like highways. Tax exemptions are allowed on interest received on these investments. … [Read more...]
Municipal Inflation-Linked Securities
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Municipal Inflation-Linked Securities Government issued securities that have variable coupon rates. The rate increases or decreases in line with CPI levels. … [Read more...]
Municipal Notes
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Municipal Notes Notes of short term duration maturity issued by municipalities. These are paid back from the revenues received by the municipality such as, proceeds from bond issues, tax receipts. … [Read more...]
Mutual Fund
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Mutual Fund Related: open-end fund, closed-end fund. Pools of money managed by investment companies, regulated under the 1940 Investment Company Act. Investors have many different investment goals to choose from, depending on the strategy of the fund manager. For example, some funds … [Read more...]
Mutual Offset
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Mutual Offset Arrangement that allows trading position established by a trader in one exchange to be set off in another exchange. For example, offsets of this nature are possible between CME and SIMEX. … [Read more...]
Mutually Exclusive Investment Decisions
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Mutually Exclusive Investment Decisions Decision to make investment that prevents making other investments. The decision may be exclusive by nature or by circumstance. … [Read more...]
Naive Diversification
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Naive Diversification Strategy used by investor to spread investment over several assets of different types to lower the variance of return expected from the portfolio as a whole. Also see: Markowitz diversification. … [Read more...]
Naked Option Strategies
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Naked Option Strategies Strategy that is not hedged and that uses either a technique of buying call options (long call strategy), buying put options (long put strategy), selling put options (short put strategy) or selling call options (short call strategy). These strategies are … [Read more...]
NASDAQ
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NASDAQ A purely electronic exchange where quotes are listed and trades are completed on electronic media. Stands for National Association of Securities Dealers Automatic Quotation System. Popularly traded common stocks in OTC market are listed on this exchange. About 4000 common … [Read more...]
National Futures Association (NFA)
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National Futures Association (NFA) Self-regulatory body set up in 1982 for supervising and regulating futures industry. … [Read more...]
National Market
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National Market Also see: internal market. Domestic and overseas market within a country. Gives the supply and demand for securities transacted here. … [Read more...]
Nationalization
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Nationalization Change from private ownership to government control in a company. … [Read more...]
Natural Logarithm
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Natural Logarithm Value of 2.7183, approximately. Logarithm to base e. … [Read more...]
