| M
|
| MI:
The amount of U.S. currency in
circulation at any given point in
time, plus consumer bank deposits.
|
| M2: Ml
plus overnight European
transactions, savings, and money
market mutual fund trans- actions.
|
| M3: A
broad measure of the money supply,
including MI, M2, and time deposits
over $100,000 in value. |
|
Manufacturer's Agent: An
independent salesperson representing
a manufacturing firm or firms on a
non-exclusive basis. Such
arrangements reduce the need for
manufacturers to keep large sales
forces on staff. |
| Margin:
Money borrowed from a brokerage
house, usually to purchase more
securities, using your securities as
collateral.
|
| Marginal
Cost: The cost of producing one
more unit of a product or service
beyond the planned quantity. |
| Market
Capitalization: The total
current market value of a company’s
stock. |
| Market
Order: When you tell your broker
to buy a stock at the current
price. |
| Market
Maker: A dealer who maintains
bid and ask pricies to buy and sell
Nasdaq listed & OTC stocks. About 10
percent of NASD firms are Market
Makers; a broker/dealer may become a
Market Maker if the firm meets
capitalization standards set down by
NASD. |
| Market
Share: The percentage of total
industry sales that one company is
responsible for. For instance, XYZ
Co. has $10 million in sales in the
widget industry, which has a total
of $100 million in sales from all
companies in the industry. So, XYZ
has a 10% market share. |
| Market
Value: The market value of a
security is the last-sale price
multiplied by total shares
outstanding. It is calculated
throughout the trading day, and is
related to the total value of the
index. |
| Marketing
Mix: The tools used to market a
product or service, including the
price, channels of distribution,
promotional methods, and the product
features. |
| Markup:
The difference between the cost to
pro- duce a product and its selling
price. |
| Material:
Information relevant to a particular
matter that may affect the outcome
of a legal suit. |
| Material
News: News released by a public
company that might reasonably be
expected to affect the value of a
company's securities or influence
investors' decisions. Material news
includes information regarding
corporate events of an unusual and
non-recurring nature, news of tender
offers, unusually good or bad
earnings reports, and a stock split
or stock dividend.
|
| Maturity:
The date on which the face value of
a bond or loan becomes due and
payable. |
| Mean:
The average of a set of numbers.
Calculated by adding several numbers
together, counting how many numbers
are being added, and then dividing
by that number. |
| Median:
The middle point in a series of
numbers where half the numbers are
higher and half are lower. For
example, 3 is the median between I
and 5. |
| Mediation:
An informal, voluntary process used
in securities industry disputes in
which a mediator helps negotiate a
mutually-acceptable resolution
between disputing parties. Unlike
arbitration or litigation, mediation
does not impose a solution. If the
parties cannot negotiate an
acceptable settlement, they may
still arbitrate or litigate their
dispute. Also see arbitration. |
| Mode:
The number appearing most frequently
in a series of numbers. For instance
in the series 1,2,5,2,7,2,8, 2 is
the mode, appearing more frequently
than any of the other numbers. |
|
Misrepresentation: A false
representation of a matter of fact
that should have been disclosed,
which deceives another so that
he/she acts upon it to his/her
injury. |
| Mitigation
of damages: The legal
requirement that an individual who
has been negatively affected by the
action of another and who has been
repaid for that action must make
every effort not to hold the other
responsible for any' self-inflicted
aggravation to the situation. |
| Money
Market Account: Accounts opened
at financial institutions such as
banks who take your money and invest
it in CD’s, T-Bills, and short-term
loans to credit-worthy companies.
|
| Monetary
Policy: Decisions made by the
Federal Reserve Board regarding the
amount of money in circulation at a
given point. By supplying more
credit to the banking system or
withdrawing credit, the Federal
Reserve Board can affect the growth
of the economy. |
| Monopoly:
A market with one firm in control of
the manufacture and supply of a
product. Until the advent of UPS,
the Postal Service was a monopoly.
|
| Mortgage:
A loan to purchase real estate, with
the property used as collateral to
guarantee the loan. |
| Mortgage
REIT: A real estate investment
trust that invests in real estate
mortgages. |
| Municipal
Bonds: Bonds issued by states,
cities, counties, and towns to fund
public capital projects like roads,
schools, sanitation facilities,
bridges, as well as operating
budgets. These bonds are exempt from
federal taxation and from state and
local taxes for the investors who
reside in the state where the bond
is issued. |
| Mutual
Fund: An investment company that
pools money from investors to buy
stocks, bonds, or other investments. |
