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- M
-
Fifth letter of a
NASDAQ stock symbol specifying that it is the company's fourth class of preferred shares.
- M.B.O.
- See:
Management buyout
- M.B.S.C.C.
- See:
Mortgage Backed Securities Clearing Corporation
- M.D.A.
- See:
Multiple discriminant analysis
- M.H.S.s
- See:
Manufactured housing securities
- M.I.P.
- See:
Monthly income preferred security
- M.I.T.
- See:
Market if touched
- M.L.P.
- See:
Master Limited Partnership
- M.M.D.A.
- See:
Money market demand account
- M.N.C.
- See:
Multinational corporation
- M.S.C.I.
- See:
Morgan Stanley Capital International
- Macaulay duration
- The weighted-average
term to maturity of the
cash flows from the
bond, where the weights are the
present value of the
cash flow divided by the price.
- Magic of diversification
- The effective reduction of
risk (variance) of a
portfolio, achieved without reduction to
expected returns through the combination of
assets with low or negative
correlations (covariances). Related:
Markowitz diversification
- Mail float
- Refers to the part of the collection and disbursement process where checks are trapped in the postal system.
-
Maintenance margin requirement
- A sum, usually smaller than but part of the original margin, which must be maintained on deposit at all times. If a customer's
equity in any
futures
position drops to, or under, the
maintenance margin level, the
broker must
issue a
margin call for the amount at money required to restore the customer's
equity in the account to the original margin level. Related:
margin,
margin call.
- Majority voting
- Voting system under which each director is voted upon separately. Related:
cumulative voting.
- Make a market
- A
dealer is said to make a
market when he quotes
bid and
offered
prices at which he stands ready to
buy and sell.
- Making delivery
- Refers to the seller's actually turning over to the buyer the
assets agreed upon in a
forward contract.
- Managed float
- Also known as
"dirty" float, this is a system of floating
exchange rates with central bank intervention to reduce currency fluctuations.
- Management buyout (M.B.O.)
-
Leveraged buyout whereby the acquiring group is led by the firm's management.
-
Management/closely held shares
- Percentage of
shares held by persons closely related to a company, as defined by the
Securities and Exchange Commission. Part of these percentages often is included in Institutional Holdings -- making the combined total of these percentages over 100. There is overlap as institutions sometimes acquire enough stock to be considered by the
S.E.C. to be closely allied to the company.
- Management fee
- An
investment advisory fee charged by the financial advisor to a
fund based on the fund's
average
assets, but sometimes determined on a sliding scale that declines as the dollar amount of the fund increases.
- Management's discussion
- A report from management to the
shareholders that accompanies the firm's financial statements in the
annual report. This report explains the period's financial results and enables management to discuss other ideas that may not be apparent in the financial statements in the annual report.
- Managerial decisions
- Decisions concerning the operation of the firm, such as the choice of firm size, firm
growth rates, and employee compensation.
-
Mandatory redemption schedule
- Schedule according to which
sinking fund payments must be made.
-
Manufactured housing securities (M.H.S.s)
-
Loans on manufactured homes - that is, factory-built or prefabricated housing, including mobile homes.
- Margin
- This allows
investors to buy
securities by borrowing money from a
broker. The margin is the difference between the
market value of a
stock and the loan a broker makes. Related:
security deposit (initial).
- Margin account (Stocks)
- A leverageable account in which
stocks can be purchased for a combination of
cash and a
loan. The loan in the
margin account is collateralized by the
stock and, if the value of the stock drops sufficiently, the owner will be asked to either put in more cash, or sell a portion of the stock. Margin rules are federally regulated, but margin requirements and
interest may vary among broker/dealers.
- Marginal
- Incremental.
- Marginal tax rate
- The tax rate that would have to be paid on any additional dollars of taxable income earned.
- Margin call
- A demand for additional funds because of adverse price movement.
Maintenance margin requirement,
security deposit maintenance
- Margin of safety
- With respect to
working capital management, the difference between 1) the amount of long-term financing, and 2) the sum of
fixed assets and the permanent component of
current assets.
- Margin requirement (Options)
- The amount of
cash an uncovered (naked)
option writer is required to deposit and maintain to
cover his daily
position valuation and reasonably foreseeable intra-day price changes.
- Mark-to-market
- The process whereby the
book value or
collateral value of a
security is adjusted to reflect current
market value.
- 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" meaning that the value of the
stock marketdropped that day.
- Marketability
- A negotiable
security is said to have good marketability if there is an active
secondary market in which it can easily be resold.
- Market-book ratio
-
Market price of a
share divided by
book value per share.
- Market capitalization
- The total dollar value of all
outstanding
shares. Computed as shares times current
market price. It is a measure of corporate size.
- Market capitalization rate
-
Expected return on a
security. The market-consensus estimate of the appropriate
discount rate for a firm's
cash flow.
- Market clearing
- Total demand for
loans by
borrowers equals total supply of loans from
lenders. The market, any market, clears at the equilibrium rate of interest or price.
- Market conversion price
- Also called conversion parity price, the price that an
investor effectively pays for
common stock by purchasing a
convertible security and then
exercising the conversion
option. This price is equal to the
market price of the
convertible security divided by the
conversion ratio.
- Market cycle
- The period between the 2 latest highs or lows of the
S&P 500, showing net performance of a fund through both an up and a down market. A market cycle is complete when the S&P is 15% below the highest
point or 15% above the lowest
point (ending a down market).
- Marketed claims
- Claims that can be bought and sold in financial markets, such as those of
stockholders and
bondholders.
- Market-if-touched (M.I.T.)
- A price order, below
market if a
buy or above market if a sell, that automatically becomes a
market order if the specified price is reached.
- Market impact costs
- Also called
price impact costs, the result of a
bid/ask spread and a
dealer's price concession.
- Market maker
- Used in the context of general equities. One who maintains firm
bid and
offer
prices in a given
security by standing ready to
buy or sell
round lots at publicly quoted prices. See:
agent,
dealer,
specialist.
- Market model
- This relationship is sometimes called the
single-index model. The market model says that the
return on a
security depends on the return on the
market portfolio and the extent of the security's responsiveness as measured, by
beta. In addition, the return will also depend on conditions that are unique to the firm. Graphically, the market model can be depicted as a line fitted to a plot of
asset returns against returns on the
market portfolio.
- Market order
- Used in the context of general equities.
Order to
buy or sell a stated amount of a
security at the most advantageous price obtainable after the order is represented in the
trading crowd. See:
limit order.
-
Market order go-along/participating
- Used for listed equity securities. See:
Percentage order.
- Market overhang
- The theory that in certain situations, institutions wish to sell their
shares but postpone the share sales because large orders under current market conditions would drive down the share price and that the consequent threat of
securities sales will tend to retard the rate of share price appreciation. Support for this theory is largely anecdotal.
- Market penetration/share
- Used in the context of general equities. Percent of
trading volume in a
stock that a particular
market-maker trades.
-
Marketplace price efficiency
- The degree to which the
prices of
assets reflect the available marketplace information. Marketplace price efficiency is sometimes estimated as the difficulty faced by active management of earning a greater
return than passive management would, after adjusting for the
risk associated with a strategy and the
transactions costs associated with implementing a strategy.
- Market portfolio
- A
portfolio consisting of all
assets available to
investors, with each
asset held in proportion to its market value relative to the total market value of all assets.
- Market price of risk
- A measure of the extra
return, or
risk premium, that investors demand to bear
risk. The reward-to-risk ratio of the
market portfolio.
- Market prices
- The amount of money that a willing buyer pays to acquire something from a willing seller, when a buyer and seller are independent and when such an exchange is motivated by only commercial consideration.
- Market return
- The
return on the
market portfolio.
- Market risk
-
Risk that cannot be
diversified away. Related:
systematic risk
- Market sectors
- The classifications of bonds by
issuer characteristics, such as state government, corporate, or utility.
- Market segmentation theory
or preferred habitat theory
- A biased expectations theory that asserts that the shape of the
yield curve is determined by the supply of and demand for
securities within each
maturity sector.
- 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 the investment in the equity
market is increased if one forecasts that the equity market will outperform
T-bills and decrease when market is anticipated to underpreform.
- Market timing costs
- Costs that arise from price movement of the
stock during the time of the transaction which is attributed to other activity in the stock.
- Market value
- (1) The price at which a
security is
trading and could presumably be purchased or sold.
(2) The value
investors believe a firm is worth; calculated by multiplying the number of shares
outstanding by the current
market price of a firm's
shares.
- 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 security in the
index, with the weights proportional to
outstanding
market value.
- Markowitz, Harry
- Nobel laureate in economics. Father of modern
portfolio theory.
- Markowitz diversification
- A strategy that seeks to combine
assets a
portfolio with
returns that are less than perfectly positively correlated, in an effort to lower
portfolio
risk (variance) without sacrificing
return. Related:
naive diversification
-
Markowitz efficient frontier
- The graphical depiction of the
Markowitz efficient set of portfolios representing the boundary of the set of feasible
portfolios that have the maximum
return for a given level of
risk. Any portfolios above the frontier cannot be achieved. Any below the frontier are dominated by
Markowitz efficient portfolios.
-
Markowitz efficient portfolio
- Also called a
mean-variance efficient portfolio, a
portfolio that has the highest
expected return at a given level of
risk.
-
Markowitz efficient set
of portfolios
- The collection of all
efficient portfolios, graphically referred to as the
Markowitz efficient frontier.
- Master limited partnership (M.L.P.)
- 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
assets when it does so by buying (taking) a deposit of the same
maturity. The term is commonly used in the
Euromarket.
- Matched book
- A bank runs a matched book when the distribution of
maturities of its
assets and
liabilities are equal.
- Matched orders
- Used for listed equity securities. Participate in equal amounts of a trade at a certain price, particularly when two parties have the same level of
priority on the
exchange floor (this requires standing in the
trading crowd).
- Matched sale transaction
- Mainly applies to convertible securities. Procedure whereby the
Federal Reserve Bank of New York sells government
securities to a non-bank
dealer against payment in federal funds. The agreement requires the dealer to sell the
securities back by a specified date, which ranges from one to 15 days. The
Fed pays the dealer a rate of interest equal to the
discount rate. These transactions, also called reverse repurchase agreements, decrease the money supply for temporary periods by reducing dealer's bank balances and thus excess
reserves.
- Matching concept
- The accounting principle that requires the recognition of all costs that are associated with the generation of the revenue reported in the
income statement.
-
Materials requirement planning
- Computer-based systems that plan backward from the production schedule to make purchases in order to manage
inventory levels.
- Mathematical programming
- An operations research technique that solves problems in which an optimal value is sought subject to specified constraints. Mathematical programming models include
linear programming, quadratic programming, and dynamic programming.
- Mature
- To cease to exist; to expire.
- Maturity
- For a
bond, the date on which the
principal is required to be repaid. In an
interest rate swap, the date that the
swap stops
accruing interest.
- Maturity date
- Usually used for bonds. Date that the bond finishes and is paid off. Date on which the
principal amount of a
note,
draft, acceptance,
bond, or other
debt instrument becomes due and payable.
- Maturity factoring
-
Factoring arrangement that provides collection and insurance of
accounts receivable.
- Maturity phase
- A phase of company development in which
earnings continue to grow at the rate of the general economy. Related:
Three-phase DDM.
- Maturity spread
- The
spread between any two
maturity sectors of the
bond market.
- Maturity value
- Related:
par value.
- Maximum price fluctuation
- The maximum amount the
contract price can change, up or down, during one trading session, as fixed by
exchange rules in the contract specification. Related:
limit price.
- May expand
- Used in the context of general equities. Warning that the size of the
order/total may be increased. See:
"more behind it."
- M.B.S. depository
- A book-entry depository for
G.N.M.A.
securities. The depository was initially operated by
M.B.S.C.C. and is currently in the process of becoming a separately incorporated, participant-owned, limited-purpose trust company organized under the State of New York Banking Law.
- M.B.S. servicing
- The requirement that the
mortgage servicer maintain payment of the full amount of contractually due
principal and
interest payments whether or not actually collected.
- Mean
- The expected value of a
random variable Arithmetic average of a sample.
- Mean of the sample
- The
arithmetic average; that is, the sum of the observations divided by the number of observations.
- Mean-variance analysis
- Evaluation of
risky prospects based on the
expected value and
variance of possible outcomes.
- Mean-variance criterion
- The selection of
portfolios based on the
means and
variances of their
returns. The choice of the higher
expected return
portfolio for a given level of variance or the lower variance
portfolio for a given expected return.
-
Mean-variance efficient portfolio
- Related:
Markowitz efficient portfolio
- Measurement error
- Errors in measuring an explanatory
variable in a
regression that leads to biases in estimated parameters.
- Medium-term note
- A corporate
debt instrument that is continuously offered to
investors over a period of time by an
agent of the
issuer. Investors can select from the following
maturity bands: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.
- Member firm
- Used for listed equity securities. Brokerage firm that has at least one membership on a major stock exchange even though, by exchange rules, the membership in the name of an employee and not of the firm itself.
-
Membership or a seat on the exchange
- A limited number of
exchange
positions that enable the holder to trade for the holder's own accounts and charge clients for the
execution of
trades for their accounts. Related:
member firm.
- Menu
- Used in the context of general equities. Hierarchy of choices concerning price and volume of
bids or
offers proposed to a customer (e.g. Menu of offerings to a customer buyer - a) 10m @ 24 1/4; b) 25m @ 24 1/2; or c) 50m @ 24 3/4).
- Merchandise
- All movable goods such as cars, textiles, appliances, etc. and 'f.o.b.' means free on board.
- Merc, the
-
Chicago Mercantile Exchange.
- Merchant bank
- A British term for a bank that specializes not in lending out its own funds, but in providing various financial services such as accepting bills arising out of trade,
underwriting new
issues, and providing advice on
acquisitions,
mergers,
foreign exchange,
portfolio management, etc.
- Merger
- (1)
Acquisition in which all
assets and
liabilities are absorbed by the buyer. (2) More generally, any combination of two companies. The firm's activity in this respect is sometimes called M&A (Merger and Acquisition)
- Mezzanine financing
- The next stage of financing that follows venture capital financing.
- Mid-cap SPRDs
- This is the same as a
SPRD except the index it tracks is
Standard&Poor's Mid-cap 400. This SPRD also trades on the
AMEX, under the symbol MDY.
- Miller, Merton
- Nobel Laureate and coauthor of the famous Miller-Modigliani theorems. Finance professor at the University of Chicago.
- Mimic
- An imitation that sends a false
signal.
- Minimum price fluctuation
- Smallest increment of price movement possible in
trading a given
contract. Also called
point or
tick.
- Minimum purchases
- For
mutual funds, the amount required to open a new account (Minimum Initial Purchase) or to deposit into an existing account (Minimum Additional Purchase). These minimums may be lowered for buyers participating in an automatic purchase plan
- Minimum-variance frontier
- Graph of the lowest possible
portfolio
variance that is attainable for a given
portfolio
expected return.
- Minimum-variance portfolio
- The
portfolio of
risky
assets with lowest
variance.
- Minority interest
- An outside ownership interest in a
subsidiary that is consolidated with the parent for financial reporting purposes.
- Mismatch bond
-
Floating rate note whose
interest rate is reset at more frequent intervals than the rollover period (e.g. a
note whose payments are set quarterly on the basis of the one-year interest rate).
- Miss the price/market
- Used for listed equity securities. 1) Have an
order in hand but fail to
execute a transaction on terms favorable to a customer and, thus, be negligent as a
broker; 2) receive an order just after a
print has transpired.
- Mixed bag
- Used in the context of general equities. Group of
stocks which consists of some which are up, down, and neutral.
- Modeling
- The process of creating a depiction of reality, such as a graph, picture, or mathematical representation.
- Modern portfolio theory
-
Principals
underlying the analysis and evaluation of rational
portfolio choices based on
risk-return trade-offs and efficient
diversification.
- Modified duration
- The ratio of
Macaulay duration to (1 + y), where y = the
bond
yield. Modified duration is inversely related to the approximate percentage change in price for a given change in
yield.
- Modified pass-throughs
-
Agency pass-throughs that guarantee (1) timely
interest payments and (2)
principal payments as collected, but no later than a specified time after they are due. Related:
fully modified pass-throughs
-
Modigliani and Miller Proposition I
- A proposition by Modigliani and Miller which states that a firm cannot change the total value of its
outstanding
securities by changing its
capital structure proportions. Also called the irrelevance proposition.
-
Modigliani and Miller Proposition II
- A proposition by Modigliani and Miller which states that the cost of
equity is a linear function of the firm's
debt/equity-ratio.
- Monetary gold
- Gold held by governmental authorities as a financial
asset.
- Monetary policy
- Actions taken by the Board of Governors of the
Federal Reserve System to influence the
money supply or
interest rates.
-
Monetary/non-monetary method
- Under this translation method, monetary items (e.g.
cash,
accounts payable and
receivable, and
long-term debt) are translated at the current rate while non-monetary items (e.g.
inventory,
fixed assets, and long-term investments) are translated at
historical rates.
- Money base
- Composed of
currency and coins outside the banking system plus
liabilities to the deposit money banks.
- Money center banks
- Banks that raise most of their funds from the
domestic and
international money markets , relying less on depositors for funds.
- Money management
- Related:
Investment management.
- Money manager
- Related:
Investment manager.
- Money market
- Money markets are for
borrowing and lending money for three years or less. The
securities in a money market can be U.S.government bonds,
Treasury bills and
commercial paper from banks and companies.
- Money market demand account (M.M.D.A.)
- An account that pays
interest based on short-term interest rates.
- Money market fund
- A
mutual fund that invests only in
short term
securities, such as bankers' acceptances,
commercial paper,
repurchase agreements and government bills. The
net asset value per
share is maintained at $1.00. Such funds are not federally insured, although the
portfolio may consist of guaranteed
securities and/or the fund may have private insurance protection.
- Money market hedge
- The use of borrowing and lending transactions in
foreign currencies to lock in the home currency value of a foreign currency transaction.
- Money market notes
- Publicly
traded
issues that may be collateralized by
mortgages and
Mortgage Backed Securities (M.B.S.s).
- Money purchase plan
- A
defined benefit contribution plan in which the participant contributes some part and the firm contributes at the same or a different rate. Also called an individual account plan.
- Money rate of return
- Annual money
return as a percentage of
asset value.
- Money supply
- M1-A: Currency plus demand deposits
- M1-B: M1-A plus other checkable deposits.
- M2: M1-B plus overnight
repos,
money market funds, savings, and small (less than $100M) time deposits.
- M3: M-2 plus large time deposits and
term repos.
- L: M-3 plus other liquid
assets.
- Monitor
- To seek information about an
agent's behavior; a device that provides such information.
- Monte Carlo simulation
- An analytical technique for solving a problem by performing a large number of trail runs, called
simulations, and inferring a solution from the collective results of the trial runs. Method for calculating
the probability distribution of possible outcomes.
-
Monthly income preferred security (M.I.P.)
-
Preferred stock
issued by a
subsidiary located in a
tax haven. The
subsidiary relends the money to the parent.
- Moral hazard
- The
risk that the existence of a
contract will change the behavior of one or both parties to the contract, e.g. an insured firm will take fewer fire precautions.
- "More behind it"
- Used in the context of general equities. More
stock exists to be bought or sold by the same buyer or seller, respectively. Often, the buyer or seller does not disclose the full size of his
buy or sell interest as not to affect the
market adversely. See:
May expand.
-
Morgan Stanley Capital International (M.S.C.I.)
- This firm publishes a number of well known
benchmarks, such as the M.S.C.I. World Index.
- Mortality tables
- Tables of
probability that individuals of various ages will die within one year.
- Mortgage
- A
loan secured by the
collateral of some specified real estate property which obliges the
borrower to make a predetermined
series of payments.
- Mortgage bond
- A
bond in which the
issuer has granted the
bondholders a
lien against the pledged
assets. See:
Collateral trust bonds
- Mortgage duration
- A modification of standard
duration to account for the impact on duration of
M.B.S.s of changes in
prepayment speed resulting from changes in
interest rates. Two
factors are employed: one that reflects the impact of changes in prepayment speed or price.
-
Mortgage pass-through security
- Also called a
passthrough, a security created when one or more
mortgage holders form a collection (pool) of mortgages and sells
shares or
participation certificates in the pool. The
cash flow from the
collateral pool
is "passed through" to the security holder as monthly payments of
principal,
interest, and
prepayments. This is the predominant type of
M.B.S. traded in the
secondary market.
- Mortgage pipeline
- The period from the taking of applications from prospective
mortgage borrowers to the marketing of the loans.
- Mortgage-pipeline risk
- The
risk associated with taking applications from prospective
mortgage borrowers who may opt to decline to accept a quoted mortgage rate within a certain grace period.
- Mortgage rate
- The
interest rate on a
mortgage loan.
-
Mortgage-Backed Securities Clearing Corporation (M.B.S.C.C.)
- A wholly owned
subsidiary of the Midwest Stock Exchange that operates a clearing service for the comparison, netting, and margining of agency-guaranteed
M.B.S.s transacted for
forward delivery.
- Mortgage-backed securities (M.B.S.s)
-
Securities backed by a pool of
mortgage loans.
- Mortgagee
- The lender of a
loan secured by property.
- Mortgager
- The
borrower of a
loan secured by property.
-
Most distant futures contract
- When several
futures contracts are considered, the
contract settling last. Related:
nearby futures contract
- Moving average
- Used in charts and
technical analysis, the
average of
security or
commodity
prices constructed in a period as
short as a few days or as long as several years and showing trends for the latest interval. As each new
variable is included in calculating the average, the last variable of the
series is deleted.
- Multicurrency clause
- Such a clause on a
Euro
loan permits the
borrower to switch from one
currency to another currency on a rollover date.
- Multicurrency loans
- Gives the
borrower the possibility of drawing a
loan in different currencies.
- Multifactor CAPM
- A version of the
capital asset pricing model derived by Robert Merton that includes extra-market sources of
risk referred to as
factors. Related:
arbitrage pricing theory
- Multifamily loans
-
Loans usually represented by
conventional mortgages on multi-family rental apartments.
- Multinational corporation (M.N.C.)
- A firm that operates in more than one country.
-
Multi-option financing facility
- A
syndicated confirmed credit line with attached options.
- Multiperiod immunization
- A
portfolio strategy in which a
portfolio is created that will be capable of satisfying more than one predetermined future
liability regardless of
interest rate changes.
-
Multiple-discriminant analysis (M.D.A.)
- Statistical technique for distinguishing between two groups on the basis of their observed characteristics.
- Multiple-issuer pools
- Under the
GNMA-II program, pools formed through the aggregation of individual
issuers' loan packages.
- Multiple rates of return
- More than one
rate of return from the same project that make the
net present value of the project equal to zero. This situation arises when the
I.R.R. method is used for a project
in which negative
cash flows follow positive cash flows. For each sign change in the cash flows, there is a different
rate of return.
- Multiple regression
- The estimated relationship between a dependent
variable and more than one explanatory variable.
- Multiples
- Another name for
price/earnings ratios.
- Multirule system
- A
technical
trading strategy that combines mechanical rules, such as the CRISMA (cumulative volume, relative strength, moving average) Trading System of Pruitt and White.
- Municipal bond
- State or local governments offer muni bonds or municipals, as they are called, to pay for special projects such as highways or sewers. The
interest that
investors receive is exempt from some income taxes.
- Municipal notes
- Short-term
notes
issued by municipalities in anticipation of tax receipts, proceeds from a bond
issue, or other revenues.
- Mutual fund
- Mutual funds are pools of money that are managed by an investment company. They offer
investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular
basis. Others seek to preserve an investor's money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a
sales charge, or
load, on investors when they
buy or sell
shares. Many funds these days are
no load and impose no
sales charge. Mutual funds are investment companies regulated by the Investment Company Act of 1940. Related:
open-end fund,
closed-end fund.
- Mutual fund theorem
- A result associated with the
C.A.P.M., asserting that
investors will choose to invest their entire
risky
portfolio in a market-index or
mutual fund.
-
Mutually exclusive investment decisions
- Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects.
- Mutual offset
- A system, such as the arrangement between the
Chicago Mercantile Exchange (C.M.E.) and
Singapore International Monetary Exchange (S.I.M.E.X.), which allows
trading
positions established on one
exchange to be
offset or transferred on another exchange.
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