Management Discussion and Analysis
The single most important part of an annual report for understanding what is happening to a company's profitability. Its goal is to explain important changes in the firm's financial results. Also called "MD&A."

 

Margin Account
A specific type of brokerage account in which the customer may borrow money from the broker to buy securities.

 

Margin Call
A demand by a broker to an investor to add additional collateral to his/her account when the customer's equity falls below a certain minimum level.

 

Market Maker
A dealer who specializes in a particular security and will purchase and sell stock from his/her inventory.

 

Market Order
An order given to a broker to buy or sell securities at the market price.

 

Market Price
The last reported sale price of a security or a current quote.

 

Market Trend
The general, over-all direction of the stock market, commonly referred to as a bull (up) or bear (down) market.

 

Maturity
The date on which a fixed-income security comes due and the issuer is obligated to repay the principal or face value of the security.

 

Merger
When two (or more) companies combine into one.

 

Money Market Fund (MMF)
An open-end mutual fund that invests in short-term, low-risk, highly liquid instruments such as CDs, government securities, or commercial paper. Many individuals view their investment in a money market fund in the same terms as they would cash deposited at their local bank.

 

Mortgage Bond
A longer-term bond that is secured by a mortgage on a property.

 

Municipal Bond
A longer-term, tax-exempt bond issued by a state or a local government. A general obligation municipal bond is backed by the general taxing power of the issuing government. A revenue bond is backed by the proceeds from the specific project that the bond was sold to finance, such as a toll road.

 

Mutual Fund
Created when a number of investors pool their funds into one portfolio that is regulated by the SEC.