M1

Narrow money supply, including cash, checking accounts, and liquid currency.

M2

Broader money supply, including M1 plus savings accounts and small CDs.

M3

Broadest money supply, including M2 plus large deposits and institutional funds.

M-Pesa

A mobile payment system in Kenya, enabling financial transactions via phones.

Maastricht Treaty

1992 EU treaty creating the Eurozone, setting monetary and fiscal rules.

Macaulay Duration

Weighted average time to receive a bond’s cash flows, measuring interest rate sensitivity.

Macro Environment

Broad economic, social, and political factors affecting markets or businesses.

Macro Manager

An investment manager focusing on broad economic trends for portfolio decisions.

Macroeconomic Factor

Large-scale economic variables, like GDP or inflation, impacting markets.

Macroeconomics

Study of economy-wide phenomena, like growth, inflation, or unemployment.

Magic Formula Investing

Joel Greenblatt’s strategy ranking stocks by earnings yield and return on capital.

Magna Cum Laude

Academic honor for high achievement, relevant for finance career credentials.

MICR

Magnetic Ink Character Recognition line on checks, encoding bank and account details.

Main Street

Informal term for small businesses or retail investors, contrasting Wall Street.

Maintenance Expenses

Costs to upkeep assets, like property repairs, impacting budgets.

Maintenance Margin

Minimum account balance to keep a margin position open, avoiding liquidation.

Majority Shareholder

An entity owning over 50% of a company’s shares, controlling decisions.

Make-or-Buy Decision

Choosing between producing in-house or outsourcing, based on cost analysis.

Make to Order (MTO)

Producing goods only after receiving orders, reducing inventory costs.

Make to Stock (MTS)

Producing goods for inventory before orders, anticipating demand.

Make Whole Call Provision

A bond clause compensating investors if redeemed early, covering lost interest.

Malpractice Insurance

Coverage for professionals against negligence claims, like doctors or advisors.

Managed Account

An investment account managed by a professional, tailored to client goals.

Managed Futures

Investments in futures contracts managed by professionals, often in CTAs.

Management Buyout (MBO)

Managers acquiring a company, often using debt, to gain control.

Management by Objectives (MBO)

Setting specific goals to guide performance, used in financial firms.

Management Discussion and Analysis (MD&A)

A financial report section explaining performance, risks, and strategies.

Management Fee

A fee charged by fund managers, typically a percentage of assets under management.

Managerial Accounting

Internal accounting for decision-making, like budgeting or cost analysis.

Manufacturer's Suggested Retail Price (MSRP)

Recommended selling price set by manufacturers, impacting retail margins.

Manufacturing

Producing goods, a key sector influencing economic and financial markets.

Manufacturing Resource Planning

Systems optimizing production resources, reducing costs and inefficiencies.

Maquiladora

Mexican factories near the U.S. border, impacting trade and labor costs.

Margin

Profit as a percentage of revenue, or borrowed funds for trading.

Margin Account

A brokerage account allowing borrowing to trade, increasing risk and returns.

Margin Call

A broker’s demand for additional funds when a margin account falls below requirements.

Margin Debt

Borrowed funds in a margin account, amplifying investment gains or losses.

Margin Loan Availability

The amount a broker allows borrowing based on account assets.

Margin of Safety

The gap between intrinsic value and market price, reducing investment risk.

Marginal Analysis

Evaluating additional costs vs. benefits for financial decisions.

Marginal Benefits

Additional gains from an extra unit of activity, like production or investment.

Marginal Cost of Production

Cost of producing one additional unit, guiding pricing and output.

Marginal Profit

Profit from selling one more unit, used in pricing strategies.

Marginal Propensity to Consume (MPC)

Portion of additional income spent on consumption, driving economic growth.

Marginal Propensity to Import (MPM)

Portion of additional income spent on imports, affecting trade balances.

Marginal Propensity to Save (MPS)

Portion of additional income saved, impacting investment and growth.

Marginal Rate of Substitution (MRS)

Rate at which a consumer trades one good for another, maintaining utility.

Marginal Rate of Technical Substitution

Rate of substituting one input for another in production, maintaining output.

Marginal Rate of Transformation

Rate at which one good’s production is sacrificed for another, per resources.

Marginal Revenue (MR)

Additional revenue from selling one more unit, guiding pricing.

Marginal Revenue Product (MRP)

Revenue generated by an additional input, like labor, in production.

Marginal Social Cost (MSC)

Total cost to society of producing one more unit, including externalities.

Marginal Tax Rate

Tax rate on an additional dollar of income, affecting financial planning.

Marginal Utility

Additional satisfaction from consuming one more unit of a good or service.

Marital Property

Assets acquired during marriage, subject to division in divorce or inheritance.

Maritime Law

Laws governing shipping and trade, impacting logistics and insurance costs.

Mark Zuckerberg

Facebook (Meta) founder, influential in tech and digital finance sectors.

Market

A system where buyers and sellers exchange goods, services, or securities.

Market Approach

Valuing assets based on comparable market transactions, like real estate.

Market Basket

A set of goods/services tracking inflation, like in CPI calculations.

Market Breadth

The number of advancing vs. declining securities, indicating market strength.

Market Cannibalization

A new product reducing sales of an existing one, impacting revenue.

Market Capitalization

Total value of a company’s outstanding shares, calculated as price times shares.

Market Capitalization-to-GDP Ratio

Market cap divided by GDP, gauging stock market size relative to economy.

Market Cycles

Recurring phases of economic or market growth and decline, like bull or bear markets.

Market Depth

The volume of buy/sell orders at different prices, showing liquidity.

Market Dynamics

Forces like supply, demand, or competition shaping market behavior.

Market Economy

An economy driven by supply and demand with minimal government intervention.

Market Efficiency

The degree to which prices reflect all available information, per EMH.

Market Exposure

The risk or potential gain from market price changes in a portfolio.

Market Failure

When markets fail to allocate resources efficiently, like due to externalities.

Market Index

A benchmark tracking a group of securities, like the S&P 500.

Market Indicators

Metrics like P/E ratios or volatility indices signaling market trends.

Market Leader

A company dominating its industry, often influencing pricing or trends.

Market Maker

A firm providing liquidity by quoting buy and sell prices for securities.

Market Manipulation

Illegal actions to distort security prices, like pump-and-dump schemes.

Market Neutral

An investment strategy balancing long and short positions to minimize market risk.

Market-On-Close Order (MOC)

An order to buy/sell at the closing price, used for end-of-day trades.

Market Order

An order to buy/sell a security immediately at the current market price.

Market Orientation

Focusing business on customer needs, guiding financial and marketing strategies.

Market Penetration

Increasing market share through pricing or promotion, boosting revenue.

Market Portfolio

A theoretical portfolio of all investable assets, used in CAPM.

Market Power

A firm’s ability to influence prices or competition, like in monopolies.

Market Price

The current price at which an asset trades in the market.

Market Research

Analyzing consumer or market data to inform financial or business decisions.

Market Risk

Risk of losses from broad market movements, like interest rate changes.

Market Risk Premium

Extra return investors demand for market risk over risk-free rates.

Market Saturation

When a market has no new demand, limiting growth for firms.

Market Segment

A subgroup of consumers with similar needs, targeted in financial marketing.

Market Segmentation

Dividing a market into distinct groups for tailored financial strategies.

Market Segmentation Theory

Yield curves reflect supply/demand for bonds of different maturities.

Market Sentiment

The overall mood of investors, driving bullish or bearish market trends.

Market Share

A firm’s sales as a percentage of total industry sales, indicating dominance.

Market Timing

Attempting to predict market highs/lows to optimize investment returns.

Mark to Market (MTM)

Valuing assets at current market prices, used in trading or accounting.

Market Value

The current price an asset would fetch in the open market.

Market Value Added (MVA)

Market value minus invested capital, measuring shareholder wealth creation.

Market Value of Equity

Total value of a company’s shares, calculated as share price times shares outstanding.

Marketable Securities

Liquid securities, like stocks or bonds, easily sold in markets.

Marketing

Promoting financial products or services to attract customers or investors.

Marketing Campaign

A coordinated effort to promote financial products, like robo-advisors or loans.

Marketing Mix

The blend of product, price, place, and promotion in financial strategies.

Marketing Plan

A strategy outlining how to market financial products or services.

Marketing Strategy

A long-term plan to achieve financial or business goals through marketing.

Markets in Financial Instruments Directive (MiFID)

EU regulation enhancing transparency and investor protection in financial markets.

Markup

The difference between cost and selling price, often in retail or securities.

Married Filing Jointly

U.S. tax status for spouses filing one return, often with tax benefits.

Married Filing Separately

U.S. tax status where spouses file individual returns, often for specific reasons.

Married Put

Buying a put option to hedge a stock position, limiting downside risk.

Martial Law

Government control during crises, potentially disrupting financial markets.

Marxian Economics

Economic theory based on Karl Marx, focusing on class struggle and labor value.

Marxism

Ideology advocating collective resource ownership, influencing economic policies.

Mass Customization

Tailoring products/services to individuals at scale, used in fintech.

Mass Production

Large-scale manufacturing to reduce costs, impacting financial efficiency.

Master-Feeder Structure

A fund structure where feeder funds pool into a master fund for efficiency.

Master Limited Partnership (MLP)

A publicly traded partnership, often in energy, with tax benefits.

Master of Business Administration (MBA)

A graduate degree in business, often focused on finance or management.

Master of Public Administration (MPA)

A degree focusing on public policy, relevant for government finance roles.

MasterCard

A global payment network processing credit and debit card transactions.

Matching Orders

Pairing buy and sell orders at the same price to execute trades.

Material Participation Tests

IRS rules determining active business involvement for tax purposes.

Material Requirements Planning (MRP)

A system optimizing inventory and production, reducing financial waste.

Mature Industry

A sector with slow growth and stable competition, like utilities.

Maturity

The date a financial instrument, like a bond, becomes due for repayment.

Maturity Date

The specific date when a debt or investment must be repaid or redeemed.

Max Pain

The stock price causing maximum option losses at expiration, influencing trading.

Maximum Drawdown (MDD)

The largest peak-to-trough decline in portfolio value, measuring risk.

Maximum Foreseeable Loss (MFL)

The worst-case loss from a risk event, used in insurance or risk management.

Maximum Loan Amount

The highest amount a lender will provide, based on credit or collateral.

McClellan Oscillator

A market breadth indicator using advancing/declining stocks to signal trends.

MCF (Measuring Natural Gas)

Thousand cubic feet, a unit for pricing natural gas in energy markets.

McKinsey 7S Model

A framework analyzing organizational effectiveness, used in financial strategy.

Mean Reversion

The theory that asset prices or metrics revert to their historical average.

Mean-Variance Analysis

A portfolio optimization method balancing return and risk, per MPT.

Medallion Signature Guarantee

A certification ensuring authentic signatures for securities transfers.

Media Kit

Materials promoting a financial brand or product to media or investors.

Median

The middle value in a dataset, used in financial or economic analysis.

Medicaid

U.S. program providing healthcare for low-income individuals, impacting budgets.

Medical Cost Ratio (MCR)

Healthcare costs divided by premiums, measuring insurance efficiency.

Medium of Exchange

An asset, like money, accepted for transactions, facilitating trade.

Medium Term Note (MTN)

Debt securities with maturities of 1-10 years, issued flexibly.

Melt Up

A rapid, unsustainable market rise driven by investor enthusiasm.

Memorandum of Understanding (MOU)

A non-binding agreement outlining deal terms, like in mergers or partnerships.

Mental Accounting

Cognitive bias where people treat money differently based on its source or use.

Menu Costs

Costs of changing prices, like reprinting menus, affecting financial decisions.

Mercantilism

Historical trade policy maximizing exports and reserves, impacting economies.

Merchandising

Promoting and selling products, like financial services, to boost revenue.

Merchant Bank

A bank focusing on underwriting, M&A, and advisory, not retail banking.

Merchant Discount Rate

Fee charged to merchants for processing card payments, impacting costs.

Merger

Combining two companies into one, often to increase market share or efficiency.

Merger Arbitrage

Investing in merger deals to profit from price gaps, often risky.

Mergers and Acquisitions (M&A)

Corporate transactions combining or acquiring firms to enhance value or growth.

Merrill Lynch

A major investment bank, now part of Bank of America, offering financial services.

Merton Model

A model assessing credit risk by treating equity as a call option on firm assets.

Metrics

Quantifiable measures, like ROI or EPS, tracking financial performance.

Metropolitan Statistical Area (MSA)

A U.S. region with economic ties, used in housing or economic analysis.

Mezzanine Debt

Subordinated debt with equity features, used in leveraged buyouts or financing.

Mezzanine Financing

Hybrid financing blending debt and equity, often for growth or acquisitions.

Michael Bloomberg

Founder of Bloomberg LP, influential in financial data and markets.

Michael Milken

Financier known for junk bonds in the 1980s, later convicted of securities fraud.

Michigan Consumer Sentiment Index (MCSI)

A survey measuring U.S. consumer confidence, predicting spending trends.

Micro Cap

Companies with market capitalization under $300 million, high-risk investments.

Micro Manager

A manager overly controlling tasks, impacting financial team efficiency.

Micro-Investing Platform

Apps allowing small investments, like Acorns, democratizing wealth-building.

Microcredit

Small loans to low-income individuals or businesses, often in developing regions.

Microeconomics

Study of individual or firm-level economic decisions, like pricing or production.

Microfinance

Financial services, like microcredit, for underserved populations or small businesses.

Micromarketing

Targeting niche customer segments with tailored financial products or campaigns.

Mid-Cap

Companies with market capitalization between $2 billion and $10 billion.

Mid-Cap Fund

A mutual fund investing in mid-cap stocks, balancing growth and stability.

Middle East and North Africa (MENA)

Region with unique economic and financial markets, like oil or Islamic finance.

Middle-Income Countries (MICs)

Nations with moderate per capita income, like Brazil, targeted for investment.

Middle Market Firm

Companies with revenues of $10 million to $1 billion, often acquisition targets.

Middle Office

Financial firm functions handling compliance, risk, and trade settlement.

Middleman

An intermediary facilitating transactions, like brokers, adding costs.

Midstream Oil Operations

Oil/gas transportation and storage, impacting energy investments.

MiFID II

2018 EU regulation enhancing financial market transparency and investor protection.

Mill Levy

A property tax rate, expressed as mills per dollar of assessed value.

Mill Rate

Synonym for mill levy, used to calculate property taxes.

Millage Rate

Another term for mill levy, determining local property tax amounts.

Millennial

Generation born ~1981-1996, influencing financial trends like fintech adoption.

Milton Friedman

Economist advocating monetarism and free markets, shaping economic policy.

Minimum Efficient Scale (MES)

The lowest production level minimizing costs, guiding business scalability.

Minimum Lease Payment

The smallest payment required under a lease, used in accounting.

Minimum Monthly Payment

The smallest payment to keep a credit account in good standing.

Minimum Wage

The lowest legal hourly pay, impacting labor costs and economic policy.

Bitcoin Mining

Validating Bitcoin transactions via computing power to earn rewards.

Minority Interest

Ownership by non-controlling shareholders in a subsidiary, reported in financials.

Minsky Moment

A sudden financial collapse after speculative borrowing, named after Hyman Minsky.

Misery Index

Unemployment rate plus inflation rate, indicating economic hardship.

Misrepresentation

False or misleading statements in financial dealings, risking legal action.

Mission Statement

A company’s purpose statement, guiding financial and strategic decisions.

Mixed Economic System

An economy blending market and government-driven elements, like the U.S.

Mobile Banking

Banking via mobile devices, offering convenience for financial transactions.

Mobile Commerce

Buying/selling via mobile devices, impacting financial services revenue.

Mobile Wallet

A digital app storing payment info, like Apple Pay, for transactions.

Mode

The most frequent value in a dataset, used in financial analysis.

Model Risk

Errors from flawed financial models, leading to inaccurate predictions or valuations.

Modern Portfolio Theory (MPT)

Harry Markowitz’s theory optimizing portfolios for risk and return via diversification.

Modified Accelerated Cost Recovery System (MACRS)

IRS depreciation method for tax purposes, accelerating asset write-offs.

Modified Accrual Accounting

Accounting blending cash and accrual methods, used in government finance.

Modified Adjusted Gross Income (MAGI)

Adjusted gross income with add-backs, used for tax credits or deductions.

Modified Cash Basis

Accounting mixing cash and accrual methods, balancing simplicity and accuracy.

Modified Endowment Contract

A life insurance policy taxed like an investment due to overfunding.

Modified Dietz Method

A formula calculating portfolio returns, accounting for cash flows.

Modified Duration

A bond’s price sensitivity to interest rate changes, derived from Macaulay duration.

Modified Gross Lease

A lease where tenant and landlord share specific property expenses.

Modified Internal Rate of Return (MIRR)

IRR adjusted for reinvestment rates, improving project evaluation accuracy.

Modigliani-Miller Theorem (M&M)

Theory that capital structure doesn’t affect firm value in perfect markets.

Modus Operandi

A standard method of operation, like a firm’s financial strategy.

Mom-and-Pop

Small, family-run businesses, often retail, with limited financial scale.

Momentum

The rate of price change, used in trading to predict trends.

Momentum Investing

Buying securities with strong recent performance, expecting continued trends.

Monetarism

Economic theory emphasizing money supply control to manage inflation and growth.

Monetarist

An economist following monetarism, like Milton Friedman, focusing on money supply.

Monetarist Theory

Theory linking money supply growth to inflation, guiding monetary policy.

Monetary Aggregates

Measures of money supply, like M1, M2, and M3, tracking liquidity.

Monetary Base

Currency in circulation plus bank reserves, controlled by central banks.

Monetary Policy

Central bank actions, like rate changes, to manage money supply and growth.

Monetize

Converting assets or activities into cash, like selling securities or ad revenue.

Money

A medium of exchange, store of value, and unit of account, like currency.

Money Center Banks

Large banks in financial hubs, handling global transactions, like JPMorgan Chase.

Money Factor

A leasing cost expressed as a decimal, equivalent to an interest rate.

Money Flow

Cash movement into or out of a security, indicating buying/selling pressure.

Money Flow Index (MFI)

A technical indicator using price and volume to signal overbought/oversold conditions.

Money Illusion

Mistaking nominal income gains for real purchasing power, ignoring inflation.

Money Laundering

Illegally disguising the source of funds, often through financial systems.

Money Management

Budgeting, investing, or managing funds to achieve financial goals.

Money Manager

A professional overseeing investments, like a fund or portfolio manager.

Money Market

A market for short-term, low-risk securities, like T-bills or commercial paper.

Money Market Account

A savings account with higher interest, often with check-writing features.

Money Market Fund

A mutual fund investing in short-term, low-risk securities for stability and income.

Money Market Yield

Annualized return on money market investments, based on purchase price.

Money Order

A prepaid payment instrument, like a check, for secure transactions.

Money Purchase Pension Plan

A defined-contribution plan with fixed employer contributions, tied to salary.

Money Supply

Total money in an economy, measured by aggregates like M1 or M2.

Money-Weighted Rate of Return

A return measure factoring in cash flow timing, reflecting investor experience.

Monopolist

A firm dominating a market, controlling prices or supply, like a utility.

Monopolistic Competition

A market with many firms offering differentiated products, like retail.

Monopolistic Markets

Markets dominated by one or few firms, reducing competition and raising prices.

Monopoly

A single firm controlling a market, setting prices with little competition.

Monopsony

A market with one buyer controlling demand, like a single employer in a town.

Monte Carlo Simulation

A statistical method modeling financial outcomes using random variables.

Month-To-Month Tenancy

A lease renewing monthly, offering flexibility but less stability.

Monthly Active User (MAU)

Users engaging with a platform monthly, a key metric for tech or fintech firms.

Moore's Law

The observation that computing power doubles roughly every two years, impacting tech investments.

Moral Hazard

Risk-taking due to protection, like insured parties acting recklessly.

Moral Suasion

Central banks persuading financial institutions to align with policy goals.

Moratorium

A temporary halt on debt payments or foreclosures, easing financial strain.

Morbidity Rate

Frequency of illness or disability, used in insurance pricing.

Morning Star

A bullish candlestick pattern with three candles, signaling a trend reversal.

Morningstar Inc.

A firm providing investment research, ratings, and data, like mutual fund ratings.

Morningstar Risk Rating

A scale assessing mutual fund risk relative to peers, guiding investors.

Morningstar Sustainability Rating

A rating of funds’ ESG performance, reflecting environmental and social impact.

Mortality Table

Actuarial data predicting lifespan, used in life insurance or annuity pricing.

Mortgage

A loan secured by real estate, repaid with interest over time.

Mortgage-Backed Security (MBS)

Securities backed by mortgage payments, like those issued by Fannie Mae.

Mortgage Banker

A lender originating and funding mortgages, often selling them to investors.

Mortgage Bond

A bond secured by mortgage collateral, reducing investor risk.

Mortgage Broker

An intermediary connecting borrowers with lenders for a fee.

Mortgage Forbearance Agreement

Temporary relief from mortgage payments, often with accrued interest.

Mortgage Insurance

Coverage protecting lenders if borrowers default, required for low-down-payment loans.

Mortgage Originator

An entity, like a bank, initiating mortgage loans for borrowers.

Mortgage Rate

The interest rate charged on a mortgage, affecting borrowing costs.

Mortgage Rate Lock Float Down

A rate lock with an option to lower if market rates drop.

Mortgage Recast

Adjusting a mortgage’s payment schedule or balance, often after a large payment.

Mortgage Servicing Rights (MSR)

The right to collect mortgage payments, sold or retained by lenders.

Mortgagee

The lender in a mortgage agreement, holding the loan’s rights.

Mortgagor

The borrower in a mortgage, pledging property as collateral.

Mosaic Theory

Combining public and non-material data to form investment insights, legally.

Most-Favored-Nation Clause

A trade agreement ensuring equal treatment among trading partners.

Mothballing

Temporarily halting operations, like factories, to cut costs while preserving assets.

Moving Average (MA)

A technical indicator smoothing price data to identify trends.

Moving Average Convergence Divergence (MACD)

A momentum indicator using moving averages to signal buy/sell opportunities.

MSCI All Country World Index (ACWI)

A global equity index tracking developed and emerging markets.

MSCI Inc.

A firm providing global investment indices, analytics, and ESG ratings.

Multi-Asset Class

Investments across stocks, bonds, and other assets for diversification.

Multi-Factor Model

A model explaining asset returns using multiple factors, like size or value.

Multicollinearity

High correlation among variables in regression, skewing financial models.

Multilateral Development Bank (MDB)

Banks like the World Bank funding global development projects.

Multilateral Investment Guarantee Agency (MIGA)

World Bank agency insuring investments against political risks in developing nations.

Multilateral Trading Facility (MTF)

EU platform for trading securities outside traditional exchanges, enhancing liquidity.

Multilevel Marketing

A business model using tiered sales networks, often controversial in finance.

Multinational Corporation

A firm operating in multiple countries, managing complex financial risks.

Multiple

A valuation metric, like P/E ratio, comparing price to financial metrics.

Multiple Employer Welfare Arrangement (MEWA)

A group benefit plan for small employers, sharing healthcare costs.

Multiple Linear Regression (MLR)

A statistical model predicting outcomes using multiple variables, used in finance.

Multiple Listing Service (MLS)

A database for real estate listings, aiding property sales and financing.

Multiples Approach

Valuing a company using ratios like P/E, compared to similar firms.

Multiplier

The economic impact of spending, amplifying GDP via subsequent transactions.

Multiplier Effect

The ripple effect of spending or investment on economic growth.

Mumbai Interbank Offered Rate (MIBOR)

India’s benchmark rate for interbank lending, guiding loan pricing.

Municipal Bond

Debt issued by local governments, often tax-exempt, for public projects.

Municipal Securities Rulemaking Board (MSRB)

U.S. body regulating municipal bond markets, ensuring transparency.

Murabaha

Islamic finance contract for cost-plus sales, avoiding interest.

Musharakah

Islamic finance partnership sharing profits and losses, interest-free.

Mutual Company

A firm owned by policyholders or members, like mutual insurance companies.

Mutual Fund

A pooled investment vehicle buying stocks, bonds, or other assets for investors.

Mutual Insurance Company

An insurer owned by policyholders, distributing profits as dividends.

Mutually Exclusive

Projects or investments where choosing one precludes others, like budgeting decisions.