Investments

Long Bond: Bonds with Maturities Over 10 Years
A long bond is a type of bond that has a maturity date of more than 10 years. This type of bond often yields higher returns due to the increased risk associated with the extended commitment period.
Long Coupon: Extended Interest Payment
A comprehensive overview of Long Coupon, detailing its definitions, applicability, historical context, and related financial terminology.
Margin Call: Financial Demand Triggered by Security Price Decline
A comprehensive exploration of Margin Call, explaining its definition, types, considerations, examples, historical context, applicability, related terms, and more.
Market Index: Weighted Values of Component Stocks
A comprehensive overview of market index numbers representing weighted values of the components that make up the index, including stock market indices weighted by prices and outstanding shares.
Market Letter: Newsletter for Market Insights
A Market Letter is a newsletter provided to brokerage firm customers or written by an independent market analyst, registered as an investment adviser with the Securities and Exchange Commission, who sells the letter to subscribers.
Market Timing: Strategies and Considerations
Market Timing involves deciding when to buy or sell securities based on economic and technical factors. It requires analyzing the market's direction, economic strength, interest rates, stock prices, and trading volume.
Marketable Securities: Easily Sold Financial Instruments
Marketable securities refer to financial instruments that are liquid, can be quickly converted into cash, and are often kept as short-term investments on a corporation's balance sheet. Examples include government securities, banker's acceptances, and commercial paper.
Master Limited Partnership: Unincorporated Business Structure
A comprehensive guide to Master Limited Partnership (MLP), including its definition, structure, legal considerations, examples, and historical context.
Master Limited Partnership (MLP): A Comprehensive Guide
An in-depth guide to understanding Master Limited Partnerships (MLPs), including their structure, benefits, taxation, and investment considerations.
Maturity Date: Definition and Significance
The maturity date is a crucial term in finance and insurance that signifies the time at which a bond, life insurance proceeds, or endowment are paid. It can be either at the death of the insured or at the end of the endowment period.
Mean Return: Expected Value of Investment Returns
A comprehensive analysis of the mean return, its calculation in security analysis and capital budgeting, alongside historical context, examples, and related concepts.
Medallion Stamp Program: Guaranteed Signature Verification
The Medallion Stamp Program is an initiative approved by the Securities Transfer Association that enables participating financial institutions to guarantee signatures on stock certificates or stock powers, ensuring authenticity and reducing fraud.
Mezzanine Financing: A Strategic Financial Instrument
An intricate financial tool which sits in a company's capital structure, subordinated to senior debt yet superior to junior debt, and often blending debt and equity features.
Microcap Stocks: Investing in Very Small Companies
Microcap stocks refer to shares of very small companies with market capitalizations typically below $250 million. These investments carry unique risks and opportunities.
Minority Discount: Market Value Reduction
A detailed exploration of Minority Discount, a reduction from the market value of an asset due to minority interest owners' inability to direct business operations.
MOODY'S INVESTMENT GRADE: Municipal Short-Term Debt Ratings
An in-depth exploration of MOODY'S INVESTMENT GRADE ratings, their classifications, and implications for municipal short-term debt securities.
Morningstar: Chicago-Based Company Known for Evaluating Mutual Funds
Morningstar is a Chicago-based company renowned for its comprehensive evaluation of mutual funds, offering a risk-adjusted performance rating system using a five-star scale.
Mortgage REIT: Real Estate Investment Trust
A type of Real Estate Investment Trust (REIT) that focuses on lending capital for real estate mortgages. Mortgage REITs generate revenue primarily through the interest they earn on mortgage loans.
Mortgage-Backed Certificate: Security Backed by Mortgages
A mortgage-backed certificate is a financial instrument backed by mortgages, where investors receive payments from the interest and principal on the underlying mortgages.
Multiple: Financial Metric
An important financial metric, the Multiple or Price-Earnings (P/E) ratio, provides insight into the valuation of a company's stock relative to its earnings.
Municipal Bond: A Crucial Financial Instrument for Local Governments
A municipal bond is a bond issued by a state or local government body such as a county, city, town, or municipal authority. Interest earned is generally not taxable by the U.S. government, nor in the jurisdiction that issued it.
Municipal Revenue Bond: Financing Public Projects
A Municipal Revenue Bond is a bond issued by a municipality to finance public works such as bridges, tunnels, or sewer systems, and is supported directly by the revenues generated from these projects.
Mutual Fund: Comprehensive Guide to Investment Options
A detailed exploration of mutual funds, including their structure, benefits, types, tax implications, and historical context.
Naked Option: Definition, Risks, and Examples
A naked option refers to an options contract for which the seller or buyer does not hold the underlying security. This concept in options trading entails significant risk, as the writer of the naked option could be exposed to substantial losses if the market moves unfavorably.
Net Asset Value (NAV): Definition & Significance in Investment
Net Asset Value (NAV) represents the value of a mutual fund or investment fund's assets minus its liabilities, typically expressed in per-share terms.
Net Present Value (NPV): Method of Determining Investment Adequacy
Net Present Value (NPV) is a financial metric used to evaluate the expected financial performance of an investment by comparing the present value of cash inflows to the present value of cash outflows, determining whether the investment is likely to be profitable.
Net Transaction: A Detailed Overview
An in-depth exploration of net transactions, where buyers and sellers engage in securities transactions without fees or commissions, including historical context and examples.
Net Yield: Understanding Post-Expense Investment Returns
An in-depth look into net yield, its calculation, importance in investment, comparison with current yield and yield-to-maturity, and real-world applications.
New Issue: Introduction to Stock or Bond Offerings
A comprehensive explanation of new issues, including initial public offerings (IPOs), regulations, and related terms.
New York Stock Exchange (NYSE): Overview and Significance
An in-depth look at the New York Stock Exchange (NYSE), its structure, history, operations, and significance in global finance.
No-Load Fund: Mutual Fund without Sales Charges
A no-load fund is a type of mutual fund offered by open-end investment companies that imposes no sales charge on shareholders. Investors buy shares directly from these funds, bypassing brokers, and avoiding the fees associated with load funds.
Nominal Yield: Understanding Interest from Fixed-Income Securities
Explore the concept of nominal yield, its calculation, types, historical context, real-world examples, comparisons with real interest rate, and FAQs.
Noncompetitive Bid: Understanding Treasury Bill Purchases Without Price Competition
A noncompetitive bid is a way for smaller investors to purchase U.S. Treasury bills at the average price of competitive bids accepted by the Treasury. Learn the intricacies, applications, and benefits of noncompetitive bidding.
Nondiscretionary Trust: Definition and Overview
A Nondiscretionary Trust is an investment trust limited to securities listed at its inception, with predetermined asset allocation parameters. Often referred to as a fixed investment trust.
Nonrefundable Provision: Bonds with Limited Redemption Options
A nonrefundable provision in a bond indenture restricts the issuer's ability to retire bonds using proceeds from a subsequent issue, offering protection to bondholders until a specified date.
Nonvoting Stock: Understanding Corporate Securities Without Voting Rights
Nonvoting stock represents corporate securities that do not provide the holder with voting privileges on corporate resolutions or the election of directors, often used in certain financial maneuvers such as takeover defenses.
Offset: Definition and Applications
A comprehensive definition and detailed explanation of 'Offset' as used in Accounting, Banking, Printing, and Securities.
Omitted Dividend: Understanding A Crucial Financial Decision
An omitted dividend is a dividend that was scheduled to be declared by a corporation but was not voted on by the board of directors. This article explains the reasons behind omitted dividends, their implications, and how they relate to cumulative preferred stock.
On Margin: Financial Trading Concept
An in-depth explanation of the concept 'On Margin' in financial trading, including its definition, applications, and considerations.
Open Interest: Total Number of Outstanding Contracts in Commodity or Options Markets
An in-depth exploration into open interest, detailing the total number of contracts in a commodity or options market that are still outstanding, breaking down its implications, calculation methods, historical context, and its significance in financial markets.
Open-End Investment Company: A Comprehensive Guide
An in-depth look into open-end investment companies, also known as mutual funds, which continually accept new investments and allow withdrawals based on the current net asset value (NAV).
Open-End Management Company: Investment Vehicle Creating Mutual Funds on Demand
An Open-End Management Company is a type of investment company that sells mutual funds to the public, continually creating new shares upon demand and allowing shareholders to buy or redeem these shares at the net asset value.
Option Holder: Buyer of Call or Put Options
A comprehensive overview of what it means to be an option holder, including definitions, types, examples, and related terms.
Original Equity: Definition and Context
Original Equity refers to the initial cash investment made by the underlying owner, distinctly separate from sweat equity and capital calls.
Original Maturity: Bond Maturity Intervals Explained
Understanding the concept of Original Maturity in the context of bonds, including its importance, application, and distinction from current maturity.
Other People’s Money (OPM): Utilizing External Resources for Leverage
An exploration of the concept of leveraging other people's money (OPM) in financial ventures, including definitions, types, applications, and historical context.
Overbought: Technical Analysis and Market Conditions
Overbought conditions occur when a security has experienced an unexpectedly sharp price rise and is vulnerable to a correction. Understanding this concept can help investors anticipate potential market movements.
Overvalued Stock: Expected Price Drop
An overvalued stock is a stock whose current price does not seem justified given its financial performance and market conditions. It is therefore expected that the stock price will drop.
Paired Shares: Common Stocks Under Unified Management
An in-depth look into Paired Shares, also known as Siamese shares or stapled stock, where two companies under the same management sell their stock as a unit.
PAPER Credit: Debt Evidenced by a Written Obligation
PAPER credit refers to debt evidenced by a written obligation that is backed by property, often used in contexts where the seller finances a sale. Commonly referred to in slang simply as 'paper.'
Paper Gold: A Versatile Financial Instrument
Paper gold certificates are financial instruments that represent ownership of a certain amount of gold. These certificates can be converted into physical gold at the issuer's office, whether private or governmental. Often used in exchanges for convenience.
PAR: Definition and Explanation
An in-depth look at PAR, its importance in finance, the difference between stated value and market value, and its various applications in the world of negotiable instruments, stocks, and bonds.
Par Bond: A Comprehensive Overview
A detailed look into Par Bonds, their characteristics, implications, and distinctions from other types of bonds.
Parking: Placing Assets in a Safe Investment
The concept of Parking in finance refers to temporarily placing assets in a safe, low-risk investment while considering other options.
Participation Certificate: Representation of Interest in Funds or Instruments
A Participation Certificate is a financial instrument representing an interest in a pool of funds or other instruments such as a mortgage pool. It allows investors to share in the benefits of the pooled resources.
Pass-Through Certificate: Income-Earning Investment
A pass-through certificate is an investment that receives income from another form, often a pool of mortgages, with income passed through to the certificate holders.
Pass-Through Security: Mechanism and Application
An in-depth look at pass-through securities, focusing on how they function, their types, special considerations, examples, history, and applicability.
Passive Income Generator (PIG): Investment or Activity That Generates Passive Income
An in-depth explanation of Passive Income Generators (PIG) and their role in income generation, tax benefits, and financial planning. Coverage includes examples, comparisons with other income sources, and related terms.
Passive Investor: A Comprehensive Guide
An in-depth guide to understanding what a Passive Investor is, including types, examples, and related terms such as Limited Partner and Stockholder.
Payback Period: Capital Budgeting Metric
An overview of the Payback Period method in capital budgeting, its calculation, benefits, limitations, and comparison with other methods like NPV and IRR.
Payroll Savings Plan: An Investment Strategy for Employees
An arrangement between employer and employee where a specified amount of money is deducted from the employee's pay and invested in stocks, bonds, or other investments.
Performance Fee: An Overview
A detailed overview of Performance Fee, also known as Incentive Fee, including its definition, types, examples, historical context, and related terms.
Performance Fund: A Mutual Fund Designed for Growth of Capital
A detailed exploration of performance funds, including their definition, investment strategy, risk considerations, historical context, and practical examples.
Performance Stock: High-Growth Investment
An in-depth look into Performance Stock, a high-growth security that investors believe will rise in value significantly, also known as Growth Stock.
Plow Back: Reinvesting Earnings in the Business
Plowing back profits refers to reinvesting a company's earnings in the business rather than paying out those profits as dividends.
Portfolio Manager: Professional Responsible for Managing Securities Portfolios
A portfolio manager is a professional responsible for overseeing and managing the securities portfolio of individual or institutional investors. They may work for mutual funds, pension funds, profit-sharing plans, bank trust departments, insurance companies, or private investors.
Position: Strategic Placement in Various Contexts
Position refers to the act of strategically placing oneself or a company in a certain area; it also has specific meanings in banking, finance, and investments, such as a bank's net balance in a foreign currency, a firm's financial condition, or an investor's stake in a particular security.
Positive Carry: A Financial Concept
Comprehensive coverage of the concept of Positive Carry in financial contexts, including definitions, examples, implications, and related terms.
Positive Leverage: Use of Borrowed Funds That Increases the Return on an Investment
Positive Leverage refers to the strategic use of borrowed funds that amplify the returns on an investment. This Financial concept is contrasted with Reverse Leverage and is fundamental in Financial Management and Investment Strategies.
Positive Yield Curve: Usual Situation in Long-Term Debt Securities
The Positive Yield Curve describes a common scenario where long-term debt securities have higher interest rates compared to short-term debt securities of the same quality.
Precious Metals: Understanding Intrinsic Value and Market Dynamics
A comprehensive examination of precious metals, including gold, silver, platinum, and palladium. This entry explores their intrinsic value, market dynamics, applications, and historical context.

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