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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Margin
Allows investors to buy securities by borrowing money from a broker. The margin is the difference be

Margin Account (Stocks)
A leverageable account in which stocks can be purchased for a combination of cash and a loan. The lo

Margin Agreement
The agreement governing customers' margin accounts.

Margin Call
A demand for additional funds because of adverse price movement. Maintenance margin requirement, sec

Margin Department
The department in a brokerage firm that monitors customers' margin accounts, ensuring that all short

Margin Of Profit
Gross profit divided by net sales. Used to measure a firm's operating efficiency and pricing policie

Margin Of Safety
With respect to working capital management, the difference between (1) the amount of long-term finan

Margin Requirement (Options)
The amount of cash an uncovered (naked) option writer is required to deposit and maintain to cover h

Margin Security
A security that may be bought or sold in a margin account as defined in Regulation T.

Marginal
Incremental.

Marginal Cost
The increase or decrease in a firm's total cost of production as a result of changing production by

Marginal Efficiency Of Capital
The percentage yield earned on an additional unit of capital.

Marginal Revenue
The change in total revenue as a result of producing one additional unit of output.

Marginal Tax Rate
The tax rate that would have to be paid on any additional dollars of taxable income earned.

Marginal Utility
The change in total satisfaction as a result of consuming one additional unit of a specific good or

Marital Deduction
A tax deduction that allow spouses to transfer unlimited amounts of property to one another.

Mark-To-Market
Adjustment of the book value or collateral value of a security to reflect current market value.

Markdown
The amount subtracted from the selling price of securities when they are sold to a dealer in the OTC

Marked-To-Market
An arrangement whereby the profits or losses on a futures contract are settled each day.

Market
Usually refers to the equity market. 'The market went down today' means that the value of the stock

Market Analysis
An analysis of technical corporate and market data used to predict movements in the market.

Market Capitalization
Total market value in millions of dollars (or local currency) is calculated as market price times pu

Market Capitalization
The total dollar value of all outstanding shares. Computed as shares times current market price. Cap

Market Capitalization Rate
Expected return on a security. The market-consensus estimate of the appropriate discount rate for a

Market Clearing
Total demand for loans by borrowers equals total supply of loans from lenders. The market, any marke

Market Conversion Price
Also called conversion parity price, the price that an investor effectively pays for common stock by

Market Cycle
The period between the two latest highs or lows of the S&P 500, showing net performance of a fund th

Market Eye
A financial information service based in the U.K. sponsored by the ISE (International Stock Exchange

Market Impact Costs
The result of a bid/ask spread and a dealer's price concession. Also called price impact costs.

Market Index
Market measure that consists of weighted values of the components that make up certain list of compa

Market Jitters
Anxiety among many investors, causing them to sell stocks and bonds, pushing prices down.

Market Maker
Used in the context of general equities. One who maintains firm bid and offer prices in a given secu

Market Model
The market model says that the return on a security depends on the return on the market portfolio an

Market Opening
The start of formal trading on an exchange.

Market Order
Used in the context of general equities. Order to buy or sell a stated amount of a security at the m

Market Out Clause
A clause that may appear in an underwriting firm commitment that releases it from its purchase requi

Market Overhang
The theory that, in certain situations, institutions wish to sell their shares but postpone the sale

Market Penetration-Share
Used in the context of general equities. Percent of trading volume in a stock that a particular mark

Market Performance Committee (MPC)
A group of NYSE market oversight specialists who monitor specialists' efficiency in maintaining fair

Market Portfolio
A portfolio consisting of all assets available to investors, with each asset held in proportion to i

Market Price
The last reported price at which a security was traded on an exchange.

Market Price
Annual High, Low, and Last prices. 5-10 year average 'Last' prices are the averages of the annual hi

Market Price Of Risk
A measure of the extra return, or risk premium, that investors demand to bear risk. The reward-to-ri

Market Prices
The amount of money that a willing buyer pays to acquire something from a willing seller, when a buy

Market Research
A technical analysis of factors such as volume, price trends, and market breadth that are used to pr

Market Return
The return on the market portfolio.

Market Risk
Risk that cannot be diversified away. Related

Market Sectors
The classifications of bonds by issuer characteristics, such as state government, corporate, or util

Market Share
The percentage of total industry sales that a particular company controls.

Market Sweep
A second offering following a tender offer, allowing institutional investors to obtain a controlling

Market Timer
A money manager who assumes he or she can forecast when the stock market will go up and down.

Market Timing
Asset allocation in which investment in the equity market is increased if one forecasts that the equ

Market Timing Costs
Costs that arise from price movement of a stock during a transaction period but attributable to othe

Market Tone
The general state of well-being of a securities market, based mostly on trading activity.

Market Value
The price at which an asset would pass from an informed and willing seller to an informed and willin

Market Value
(1) The price at which a security is trading and could presumably be purchased or sold. (2) What inv

Market Value Ratios
Ratios that relate the market price of the firm's common stock to selected financial statement items

Market Value-Weighted Index
An index of a group of securities computed by calculating a weighted average of the returns on each

Market-Book Ratio
Market price of a share divided by book value per share.

Market-If-Touched (MIT)
A price order, below market if a buy or above market if a sell, that automatically becomes a market

Market-On-Close (MOC) Order
An order to trade stocks, options, or futures as close as possible to the market close.

Marketability
A negotiable security is said to have good marketability if there is an active secondary market in w

Marketable Securities
Securities that can readily be converted into cash, including government securities, bankers' accept

Marketable Securities
Securities that are easily convertible to cash because there is high demand allowing them to be sold

Marketable Title
A clear, reasonably incontestable title to a piece of real estate that is good for transaction purpo

Marketed Claims
Claims that can be bought and sold in financial markets, such as those of stockholders and bondholde

Marketplace Price Efficiency
The degree to which the prices of assets reflect the available marketplace information. Marketplace

Marking Up Or Down
The amount by which a securities dealer raises or lowers the price of a stock or bond due to changes

Markowitz Diversification
A strategy that seeks to combine in a portfolio assets with returns that are less than perfectly pos

Markowitz Efficient Frontier
The graphical depiction of the Markowitz efficient set of portfolios representing the boundary of th

Markowitz Efficient Portfolio
Also called a mean-variance efficient portfolio, a portfolio that has the highest expected return at

Markowitz, Harry
Nobel laureate in economics. Father of modern portfolio theory.

Marriage Penalty
A tax that has the effect of penalizing a married couple because they pay more tax on a joint tax re

Married Put
A put option bought at the same time as its underlying securities in order to hedge the price paid f

Master Limited Partnership (MLP)
A publicly traded limited partnership.

Matador Market
The foreign market in Spain.

Match-Fund
A bank is said to match-fund a loan or other asset when it does so by buying (taking) a deposit of t

Matched And Lost
The outcome of the flip of a coin used to determine which of two brokers who are locked in competiti

Matched Book
A bank runs a matched book when the of maturities of its assets and liabilities is distribution equa

Matched Maturities
The coordination by a financial institution of the maturities of its assets (loans) and liabilities

Matched Orders
Used for listed equity securities. Participate in equal amounts of a trade at a certain price, parti

Matched Sale Transaction
Applies mainly to convertible securities. Procedure whereby the Federal Reserve Bank of New York sel

Matching Concept
The accounting principle that requires the recognition of all costs that are associated with the gen

Materiality
The importance of an event or information in influencing a company's stock price.

Materials
The physical inputs to manufacturing, treated as part of cost of sales. Also known as raw materials.

Materials Requirement Planning
Computer-based systems that plan backward from the production schedule to make purchases in order to

Mathematical Programming
An operations research technique that solves problems in which an optimal value is sought subject to

Matif SA
The futures exchange of France.

Matrix Trading
Swapping bonds in order to take advantage of temporary differences in the yield spread between bonds

Mature
To cease to exist; to expire.

Mature Economy
The economy of a nation with a stable population and slowing economic growth.

Maturity
For a bond, the date on which the principal is required to be repaid. In an interest rate swap, the

Maturity Date
Usually used for bonds. Date that the bond finishes and is paid off. Date on which the principal amo

Maturity Factoring
An arrangement that provides collection and insurance of accounts receivable.

Maturity Phase
A stage of company development in which earnings to grow at the rate of the general economy. Related

Maturity Spread
The difference in returns between bonds of different time lengths.

Maturity Value
Related

Maximum Capital Gains Mutual Fund
A mutual fund whose objective is to produce capital gains by investing in small or risky rapid-growt

Maximum Price Fluctuation
The greatest amount by which the contract price can change, up or down, during one trading session,

May Day
The date of May 1, 1975, after which brokers were allowed to charge any brokerage commission, rather