|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 companyís 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 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
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
|Maturity: The date on which
the face value of a bond or loan becomes due and
|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
|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 CDís,
T-Bills, and short-term loans to credit-worthy
|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
|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.
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