Business / Finance Glossary

Marketability: A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold.

Marketable Securities: Securities that can readily be converted into cash, including government securities, bankers' acceptances, and commercial paper.

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

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

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 ea . . . View Full Definition

Marking Up Or Down: The amount by which a securities dealer raises or lowers the price of a stock or bond due to changes in demand and supply.

Markowitz Diversification: A strategy that seeks to combine in a portfolio assets with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing re . . . View Full Definition

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 p . . . View Full Definition

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, which can be graphed as the Markowitz efficient frontier.

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 return than they would if they file tax returns individually.

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

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 the same maturity. The term is commonly used in the Euromarket.

Matched And Lost: The outcome of the flip of a coin used to determine which of two brokers who are locked in competition for equal trades may actually execute the trades.

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

Matched Maturities: The coordination by a financial institution of the maturities of its assets (loans) and liabilities (deposits) in order to enable it to meet its obligations at the required times.

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 requi . . . View Full Definition

Matched Sale Transaction: Applies mainly to convertible securities. Procedure whereby the Federal Reserve Bank of New York sells government securities to a nonbank dealer against payment in federal funds. The agreeme . . . View Full Definition

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.

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 manage inventory levels.

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