Letter M Vocabulary Flashcards
A fee charged by investment managers for managing an investment fund or portfolio.
Management Fee
A brokerage account that allows investors to buy securities by borrowing a portion of the purchase amount from the broker.
Margin Account
A demand from a broker to deposit more money or securities to maintain the minimum required balance in a margin account.
Margin Call
The difference between the intrinsic value of a security and its market price.
Margin of Safety
The total value of a company’s outstanding shares of stock, calculated as share price times number of shares.
Market Capitalization
A short-term price decline of at least 10% to adjust for an overvaluation.
Market Correction
An entity or individual that provides liquidity in a market by regularly buying and selling a security at publicly quoted prices.
Market Maker
An order to buy or sell a security immediately at the best available current price.
Market Order
The risk of losses in investments due to market-wide factors.
Market Risk
The strategy of making buy or sell decisions based on predictions of market movements.
Market Timing
An order to buy or sell a security at the market’s closing price.
Market-on-Close (MOC) Order
The date on which a debt instrument, like a bond, becomes due and principal is repaid.
Maturity Date
A debt note that usually matures in a period between one and 10 years.
Medium-Term Note
Corporate strategies dealing with the buying, selling, and combining of different companies.
Mergers and Acquisitions
Stock from a company with a market capitalization typically between $2 billion and $10 billion.
Mid-Cap Stock
A theory on how to construct an optimal portfolio by considering the relationship between risk and return.
Modern Portfolio Theory (MPT)
A savings account that usually offers a higher rate of interest in exchange for higher minimum balance requirements.
Money Market Account
A mutual fund that invests in short-term, high-quality debt securities.
Money Market Fund
A financial security backed by a pool of mortgages.
Mortgage-Backed Security (MBS)
A statistical calculation used to smooth data by averaging data points over a specific number of periods.
Moving Average
A debt security issued by a city, municipality, or county to finance public projects.
Municipal Bond
An investment vehicle that pools together funds from many investors to purchase a diversified portfolio of securities.
Mutual Fund
