Merchandise Goods that can be moved. For example, cars, equipment, appliances, textiles etc. … [Read more...]
Merchant Bank
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Merchant Bank A bank that provides advice on mergers, acquisitions, and other major financial events. The bank does not usually take deposits or lend money to others. Very similar to an investment bank. … [Read more...]
Merger
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Merger Purchase or acquisition where all liabilities and assets are absorbed by buyer. Or A consolidation of companies under specific terms. … [Read more...]
Mimic
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Mimic A duplicating occurrence or imitation giving rise to incorrect conclusions. … [Read more...]
Minimum Price Contract
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Minimum Price Contract Forward contracts that come with a guarantee of a minimum price for delivery of the agricultural commodity underlying the contract. … [Read more...]
Minimum Purchases
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Minimum Purchases Used in mutual funds terminology. Minimum amount needed for opening new account by purchasing the units or minimum additional deposit into account required. With automatic purchase plans, these limits may be lowered. … [Read more...]
Minimum-Variance Frontier
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Minimum-Variance Frontier Graphical representation of lowest minimum portfolio variance, achievable for a specific expected return with a portfolio. … [Read more...]
Minimum-Variance Portfolio
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Minimum-Variance Portfolio A set of assets grouped in a portfolio to give lowest risk for expected returns. … [Read more...]
Minority Interest
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Minority Interest Ownership by entity or individual other than parent company in a subsidiary consolidated with a parent company. … [Read more...]
Mismatch Bond
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Mismatch Bond Note that carries floating interest rate. The rate is adjusted at greater frequency than the rollover period. For example a note whose interest is adjusted based on the one-year interest rate but whose payments are made every quarter. … [Read more...]
Modeling
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Modeling Creating a depiction or representation of an actual occurrence. Graph, picture, or mathematical representation is considered a model. … [Read more...]
Model Risk
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Model Risk Risk occurring when the financial model used to evaluate the firm's market risks or value transactions fails to fulfill the tasks or identify the risks it is expected to. Considered a subset of operational risk, because it affects the firms that use the model. … [Read more...]
Modern Portfolio Theory
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Modern Portfolio Theory Theory that helps analyze and measure portfolio choices so that efficient diversification is maintained with proper understanding of risk versus return. … [Read more...]
Modified Duration
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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...]
