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Macroeconomics

Analysis of a country's economy using major indicators such as unemployment, prices, inflation, and production of particular products.

Managed Account

An investment account that is professionally managed. The portfolio manager has the authority to select, buy and sell securities in the account without prior approval from the investor.

Management Buyout

The management team of a company purchases all of a company's publicly held shares to take the company private.

Management Fee

The fee that is charged by a money manager. The manager can be a mutual fund, Separate Account Manager, Exchange Traded Fund, hedge fund, etc.

Margin

The amount that a customer deposits with a broker when borrowing to buy securities.

Margin Account

A brokerage account that allows investors to buy securities with money that is borrowed from the broker/dealer.

Marginal Tax Rate

Amount of tax that is imposed on an additional dollar of income.

Margin Requirement

The amount of money that an investor must deposit in the form of cash or eligible securities in a margin account.

Market Analysis

Research by specialized professionals who attempt to predict the future direction of the stock and bond markets. Most analysts use technical or fundamental analysis to make their predictions.
Market Environment
A general name for a quarterly report that advisors provide investors that describes the markets' results for the most recent quarter. Markets include equity, fixed income, alternative investments, domestic, and global.

Market Index

The Standard & Poor's 500 is a widely followed market index that is a proxy for the equity market.

Market Neutral Investing

An investment strategy that attempts to neutralize the impact of market movement. Performance is generated by market inefficiencies.

Market Timing

An investment strategy that is based on the timely buying and selling of securities. Most experts agree that timing does not work over longer time periods because short-term market movement is not predictable.

Market Value

The value of investments that is based on what they can be sold for on an exchange.

Maturity

The date at which the principal amount of a bond is due and payable to investors.

Microeconomics

The study of basic economic units such as households, companies, and industries.

Middle Capitalization (Mid Caps)

Stocks with mid-level amounts of capitalization (numbers of shares outstanding times the price of the shares). Mid Cap stocks typically have $1 billion to $5 billion in market valuation.

Modern Portfolio Theory

A quantitative process for managing the risk and return that is associated with investing in the securities markets..

Momentum

Rate of acceleration of an economic, price or volume statistic. A strong economy is said to have a lot of momentum. In the stock market, technical analysts evaluate momentum by charting stock prices and trading volumes.

Monetary Policy

The Federal Reserve Board makes decisions that impact money supply which in turn impacts interest rates, economic growth rates, and the money supply.

Money Center Bank

A bank that conducts business in one of the world's major financial centers: New York, Chicago, San Francisco, Los Angeles, London, Paris, or Tokyo.

Money Management

The professional management of assets that are invested in the securities markets.

Money Market

Short-term debt instruments that include certificates of deposit, commercial paper, banker's acceptances. Treasury bills, and discount notes.

Money Market Fund

A mutual fund that invests in money market instruments. Typically thought of as risk-free due to the short maturity schedules of the investments. Most money market funds have check writing privileges and issue credit cards.

Money Supply

Total amount of money in circulation that includes currency and deposits in savings and checking accounts.

Morgan Stanley Capital International (MSCI)

Global indexes that are developed and maintained by Morgan Stanley.

Morningstar Ratings

Ratings on multiple variables for mutual funds, exchange-traded funds (ETFs), separately managed accounts (SMAs), and annuities.

Mortgage Backed Certificate

A security that is backed by a pool of mortgages. The certificates are issued by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association.

Mortgage REIT

A mutual fund that invests in loans that are secured by real estate.

Municipal Bond

Debt obligations of state and local governments.

Mutual Fund

Pooled funds that invest in all types of securities. Each investor has a proportionate interest in a fund that is based on the amount of invested assets.