M Flashcards
(44 cards)
Macroeconomics
Macroeconomics focuses on the performance
of the economy as a whole. It looks at the
broader picture and to the challenges facing
society as a result of the limited amounts of
natural resources, human effort and skills,
and technology.
Major Trend
Underlying price trend prevailing in a
market despite temporary declines or rallies.
Managed Account
An account whereby a licensed portfolio
manager has the discretion to decide and
execute suitable investment decisions on
behalf of clients
Managed Product
A pool of capital gathered to buy securities
according to a specifi c investment mandate.
The pool seeds a fund managed by an
investment professional that is paid a
management fee to carry out the mandate
Management Expense Ratio
The total expense of operating a mutual
fund expressed as a percentage of the fund’s
net asset value. It includes the management
fee as well as other expenses charged directly
to the fund such as administrative, audit,
legal fees etc., but excludes brokerage fees.
Published rates of return are calculated after
the management expense ratio has been
deducted.
Management Fee
The fee that the manager of a mutual fund
or a segregated fund charges the fund for
managing the portfolio and operating the
fund. The fee is usually set as fi xed
percentage of the fund’s net asset value.
Managers’ Discussion and Analysis
MD&A
A document that requires management of
an issuer to discuss the dynamics of its
business and to analyze its fi nancial
statements with the focus being on
information about the issuer’s fi nancial
condition and operations with emphasis on
liquidity and capital resources.
Margin
The amount of money paid by a client
when he or she uses credit to buy a security.
It is the difference between the market
value of a security and the amount loaned
by an investment dealer.
Margin Agreement
A contract that must be completed and
signed by a client and approved by the fi rm
in order to open a margin account. This
sets out the terms and conditions of the
account
Margin Call
When an investor purchases an account on
margin in the expectation that the share
value will rise, or shorts a security on the
expectation that share price will decline,
and share prices go against the investor, the
brokerage fi rm will send out a margin call
requiring that the investor add additional
funds or marketable securities to the
account to protect the broker’s loan.
Marginal Tax Rate
The tax rate that would have to be paid on
any additional dollars of taxable income
earned
Market
Any arrangement whereby products and
services are bought and sold, either directly
or through intermediaries.
Market Capitalization
The dollar value of a company based on the
market price of its issued and outstanding
common shares. It is calculated by
multiplying the number of outstanding
shares by the current market price of a
share.
Market Maker
A trader employed by a securities fi rm who
is authorized and required, by applicable
self-regulatory organizations (SROs), to
maintain reasonable liquidity in securities
markets by making fi rm bids or offers for
one or more designated securities
Market Order
An order placed to buy or sell a security
immediately at the best current price.
Market Risk
The non-controllable or systematic risk
associated with equities.
Market Segmentation Theory
A theory on the structure of the yield
curve. It is believed that large institutions
shape the yield curve. The banks prefer to
borrow short term while the insurance
industry, with a longer horizon, prefers
long-term money. The supply and demand
of the large institutions shapes the curve
Marketability
A measure of the ability to buy and sell a
security. A security has good marketability
if there is an active secondary market in
which it can be easily bought and sold at a
fair price
Marketable Bonds
Bonds for which there is a ready market
(i.e., clients will buy them because the
prices and features are attractive).
Marking-to-Market
The process in the futures market in which
the daily price changes are paid by the
parties incurring losses to the parties
earning profi ts.
Married Put or a Put Hedge
The purchase of an underlying asset and the
purchase of a put option on that underlying
asset.
Material Change
A change in the affairs of a company that is
expected to have a signifi cant effect on the
market value of its securities.
Mature Industry
An industry that experiences slower, more
stable growth rates in profi t and revenue
than growth or emerging industries, for
example.
Maturity
The date on which a loan or a bond or
debenture comes due and is to be paid off.
