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MSCI Inc.: What it is and why it matters MSCI (Morgan Stanley Capital International) is an investment-research firm that provides indexes, data, analytics, and risk-management tools to institutional investors, asset managers, and funds. It is best known for its family of benchmark stock indexes, which underpin many mutual funds and exchange-traded funds (ETFs) and serve…

MSCI All Country World Index (ACWI) Key takeaways The MSCI ACWI is a global equity index that tracks nearly 3,000 stocks across developed and emerging markets (47 countries). It is widely used as a benchmark for global equity funds and as a guide to geographic diversification. Institutional and individual investors access the index through funds…

Moving Average Convergence/Divergence (MACD) What is MACD? MACD is a momentum and trend-following technical indicator that helps traders identify changes in a security’s price direction, strength, and potential entry/exit points. Developed in the 1970s, it remains widely used and is a standard tool on most charting platforms. How it’s calculated MACD line = 12-period EMA…

Moving Average (MA) What is a Moving Average? A moving average (MA) is a technical analysis tool that smooths price data by creating a constantly updated average price over a specified number of periods. MAs help reveal trend direction, filter out short-term noise, and identify potential support and resistance levels. Because they rely on past…

Mothballing: Meaning and Overview Mothballing is the planned deactivation and preservation of equipment, facilities, or assets so they can be returned to service, sold, or salvaged later. It’s commonly used for high-cost, long-lived capital goods—aircraft, ships, oil rigs, heavy machinery, and manufacturing plants—where retaining value and reopening quickly can be strategically important. Key takeaways Mothballing…

Most-Favored-Nation (MFN) Clause Key takeaways The MFN clause requires equal trade terms among trading partners to prevent discrimination. In U.S. law MFN treatment is often called “permanent normal trade relations.” The World Trade Organization (WTO) uses MFN as a core principle but allows important exceptions. Enforcement limits and the rise of regional trade blocs and…

Mosaic Theory Overview The mosaic theory is an analytical approach used by security analysts to value companies and their securities. It involves gathering and synthesizing a wide range of information — public, non‑public (but non‑material), and seemingly insignificant details — to form a cohesive view of a company’s prospects and valuation. Key points Analysts combine…

Mortgagor: What it is and How it Works Key takeaways A mortgagor is the borrower who takes out a mortgage loan and pledges real property as collateral. The mortgagee is the lender that makes the loan and holds a lien on the property title. Mortgage approval depends on underwriting factors (credit, income, debt levels, and…

Mortgagee: Definition, Role, and How It Works Key takeaways * A mortgagee is the lender (bank or other financial institution) that provides funds for a mortgage. * To protect itself, a mortgagee takes a legal interest in the mortgaged property—typically a recorded lien and title-rights arrangement—so it can recover the asset if the borrower defaults….

Mortgage Servicing Rights (MSR): Overview Mortgage servicing rights (MSRs) are contractual rights that let one party administer an existing mortgage on behalf of the loan owner. The servicer handles day-to-day tasks—collecting payments, maintaining escrow accounts for taxes and insurance, remitting principal and interest to the investor, and managing customer service—while the mortgage investor retains ownership…

Mortgage Recast: What It Is and How It Works Key takeaways * A mortgage recast (or reamortization) recalculates your remaining monthly payments after you make a large lump-sum principal payment. * Recasting lowers monthly payments by spreading the new, lower principal over the remaining term; it does not change the interest rate. * Recasting is…

Mortgage Rate Lock Float Down Key takeaways * A rate lock float down lets you lock a mortgage rate while preserving the option to reduce it if market rates fall during the lock period. * It protects you from rising rates but requires you to actively request the lower rate — lenders typically will not…

Mortgage Rate: Definition, Types, and How Rates Are Determined Key takeaways * A mortgage rate is the annual interest charged on a home loan; it determines how much you pay in interest over the life of the loan and affects your monthly payment. * Rates can be fixed (unchanging) or variable (adjustable with market benchmarks)….

Mortgage Originator: Definition and Role A mortgage originator is an individual or institution that works with a borrower to create a home loan. Originators handle the application, documentation, underwriting coordination, and closing. They operate in the primary mortgage market and may be retail banks, credit unions, mortgage bankers, or mortgage brokers. How Mortgage Originators Work…

Mortgage Insurance Mortgage insurance is a policy that protects a lender or titleholder if a borrower defaults, dies, or otherwise cannot meet mortgage obligations. It covers losses to the lender or property holder—not the borrower—and is commonly required when the borrower has limited equity in the home. Key takeaways Mortgage insurance protects the lender or…

Mortgage Forbearance Agreement Key takeaways * A mortgage forbearance agreement is a temporary plan between a lender and a borrower that reduces or suspends mortgage payments and prevents foreclosure for a set period. * Interest generally continues to accrue during forbearance; the borrower must repay missed amounts according to agreed terms after the period ends….

Mortgage Broker Key takeaways * A mortgage broker is an intermediary who matches borrowers with lenders but does not fund loans. * Brokers gather documentation, shop multiple lenders, and submit applications on the borrower’s behalf. * They earn commissions (often called origination fees) and are typically paid at closing; borrowers may also share the cost….

Mortgage Bonds Key takeaways Mortgage bonds are debt securities backed by real estate or pools of mortgage loans, giving investors a claim on underlying property or mortgage cash flows. Because they are secured, mortgage bonds are generally safer than unsecured corporate bonds and stocks, and therefore tend to offer lower yields. Mortgage-backed securities (MBS) are…

Mortgage Banker: What It Is and How It Works Key takeaways A mortgage banker is a company, individual, or institution that originates mortgages using its own funds or borrowed funds. Mortgage bankers typically earn fees from loan originations and are usually employed by a financial institution. They can approve or deny mortgage applications on behalf…

Mortgage-Backed Security (MBS): What They Are, How They Work, and Key Risks Key takeaways * Mortgage-backed securities (MBS) are investment securities backed by pools of residential mortgages that pay investors periodic principal and interest. * Agency MBS are issued or guaranteed by government-sponsored entities (or explicitly by the government) and carry lower credit risk; non‑agency…

Mortgage: What It Is, How It Works, and Key Considerations Key takeaways * A mortgage is a loan used to buy or maintain real estate; the property serves as collateral. * Mortgage cost depends on loan type, term, interest rate, and borrower qualifications. * Common mortgage types include fixed-rate, adjustable-rate (ARM), government-backed (FHA, VA, USDA),…

Mortality Table Key takeaways A mortality table (life table or actuarial table) shows the probability that individuals in a defined population will die during a specified time interval. Insurers and government programs (e.g., Social Security) rely on mortality tables to set premiums, benefits, and assess long-term liabilities. Two main types exist: period life tables (snapshot…

Morningstar Sustainability Rating The Morningstar Sustainability Rating evaluates mutual funds and ETFs on environmental, social, and governance (ESG) characteristics to help investors compare how sustainably a fund’s holdings behave relative to peers. Overview Ratings use a five-globe scale: 1 globe (lowest) to 5 globes (highest). Three globes is average. Ratings focus on ESG-related risk to…

Morningstar Risk Rating: Definition, How It Works, and Practical Use What it is The Morningstar risk rating is a five-level assessment Morningstar applies to mutual funds and ETFs to summarize historical risk and risk-adjusted performance. It helps investors compare funds within the same Morningstar category by measuring variability in monthly returns, with extra emphasis on…

Morningstar Inc. What Morningstar does Morningstar is a Chicago-based investment research and financial services firm that provides data, analysis, ratings, and software to individual investors, financial advisors, and institutional clients worldwide. Its offerings include free web content, subscription research, professional data terminals, portfolio tools, managed investment products, indexes, and advisory services. Explore More Resources ›…

Morning Star What is a Morning Star? The Morning Star is a three-candle bullish reversal candlestick pattern that appears at or near the bottom of a downtrend. It signals a shift from selling pressure to buying pressure and is used by traders to anticipate the start of an uptrend. How to identify the pattern The…

Morbidity Rate Morbidity rate measures how frequently a disease or illness occurs in a population. It helps assess population health, plan health care services, and inform policy and financial decisions (for example, insurance pricing and reserving). Key takeaways Morbidity rate tracks the occurrence of acute and chronic diseases in a population. It helps determine health-care…

Understanding Moratoriums: Temporary Legal Suspensions Explained What is a moratorium? A moratorium is a temporary pause on activities, laws, or enforcement actions intended to provide time to address an immediate problem. Governments, regulators, courts, or private organizations can impose moratoriums to manage crises, protect parties while plans are developed, or reduce short-term risk. Purpose and…

Moral Suasion Key takeaways Moral suasion is persuading a person or group to act a certain way through rhetoric, persuasion, or implicit threats rather than coercion or force. Central banks commonly use moral suasion (also called “jawboning” or “open‑mouth operations”) to influence market expectations and behavior when direct policy tools are limited. Typical methods include…

What is moral hazard? Moral hazard occurs when a party insulated from the consequences of risky behavior has an incentive to take greater risks than they otherwise would. It typically arises when one party in a transaction cannot fully monitor or enforce the other party’s actions, or when protection (insurance, guarantees, or third‑party backing) reduces…

Moore’s Law: Meaning, Impact, and Future Overview Moore’s Law began as an observation by Gordon E. Moore in 1965: the number of transistors on an integrated circuit tends to double about every two years, leading to steadily greater computing power at lower cost. Although not a physical law, it served as a planning target and…

Monthly Active Users (MAU) Monthly Active Users (MAU) is a common performance metric that counts the number of unique users who interact with a website, app, or service within a 30-day period. Identification typically relies on a unique ID, email, username, or login. MAU is used to gauge overall reach, track growth, and evaluate marketing…

Month-to-Month Tenancy Key takeaways * A month-to-month tenancy is a rental arrangement with no fixed end date; rent is paid monthly and the tenancy continues until either party gives notice. * It offers flexibility for both tenants and landlords but provides less long-term security than a fixed-term lease. * Local laws determine required notice periods…

Monte Carlo Simulation What it is A Monte Carlo simulation estimates the probability distribution of possible outcomes for a process that involves randomness. Instead of replacing uncertain inputs with single average values, it repeatedly samples those inputs from specified probability distributions and aggregates the results to quantify risk and uncertainty. Key takeaways Monte Carlo simulations…

Monopsony What is a monopsony? A monopsony is a market structure in which a single buyer dominates demand for a good, service, or factor of production. That buyer—called the monopsonist—can influence prices and terms because sellers have few or no alternative purchasers. Monopsonies often appear where one employer supplies most of the jobs in a…