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Monopoly: Definition, Types, Market Effects, and Regulation What is a monopoly? A monopoly is a market structure in which a single seller dominates an industry, faces no close substitutes, and can control supply and price. High barriers to entry prevent other firms from competing, which can limit consumer choice and reduce market competitiveness. Key takeaways…

Monopolistic Markets: Characteristics, History, and Effects What is a monopolistic market? A monopolistic market is one in which a single firm supplies an entire market’s demand for a good or service. That firm becomes a price maker—it can restrict output and set prices without facing meaningful competition. Pure monopolies are uncommon without legal or structural…

Monopolistic Competition Monopolistic competition is a market structure where many firms sell products or services that are similar but not identical. Each firm has some degree of market power because of product differentiation (brand, quality, features, packaging, or marketing), yet competition remains strong because close substitutes are available and barriers to entry are low. Key…

What is a monopolist? A monopolist is an individual, group, or firm that effectively controls the supply of a particular good or service in a market. With no viable substitutes and little or no competition, a monopolist can exert substantial power over price and output decisions. Key points A monopolist dominates a market and can…

Money-Weighted Rate of Return (MWRR) What is MWRR? The money-weighted rate of return (MWRR) measures investment performance by accounting for the timing and size of cash flows—contributions, withdrawals, dividends and sale proceeds. MWRR is mathematically equivalent to the internal rate of return (IRR) and reflects how an investor’s actions affect overall returns. How it works…

Money Supply The money supply is the total amount of money and liquid assets available in an economy at a given moment. It includes cash (notes and coins) and deposit balances that can be converted quickly into cash. Central banks monitor and influence the money supply because its size and growth rate affect interest rates,…

Money Purchase Pension Plan A money purchase pension plan is an employer-sponsored, tax-advantaged retirement plan that requires the employer to contribute a fixed percentage of each participating employee’s salary every year. Employees may also contribute and typically choose investment options from those offered by the plan. How it works Employer contributions are mandatory and based…

Money Orders — A Secure Prepaid Payment Method Key takeaways * A money order is a prepaid, negotiable payment instrument used as a secure alternative to cash or personal checks, commonly for small to medium payments. * Issued by post offices, banks, and many retailers, money orders are widely accepted and can be cashed or…

Money Market Yield Money market yield measures the annualized return on highly liquid, short-term securities (less than one year), such as Treasury bills (T‑bills), commercial paper, certificates of deposit (CDs), and municipal notes. It converts a holding‑period return to an annual rate using a 360‑day banking convention, making short‑term instruments comparable to other investments. Key…

What Is a Money Market Fund? A money market fund is a mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents. It’s designed to provide high liquidity and low risk while generating modest income. Unlike bank deposit accounts, money market funds are investment products and are not FDIC‑insured. Key points *…

Money Market Account What is a money market account (MMA)? A money market account is a deposit account offered by banks and credit unions that combines features of savings and checking accounts. It earns interest like a savings account but often provides easier access to funds through check-writing and a debit card. MMAs are deposit…

Money Market The money market is the segment of the financial system that handles short-term borrowing and lending—typically instruments that mature in one year or less. It provides highly liquid, low-risk places for governments, banks, corporations, and individual investors to park cash temporarily and meet near-term funding needs. How it works Mostly a wholesale market…

Money Manager A money manager (also called a portfolio manager, asset manager, or investment manager) is an individual or firm that makes investment decisions and manages securities portfolios on behalf of individual or institutional clients. Acting as a fiduciary, a money manager builds and implements an investment strategy, selects and monitors investments, and adjusts the…

Money Management: Essential Concepts and Leading Firms What is money management? Money management is the ongoing process of budgeting, saving, investing, and spending to meet financial goals and preserve wealth. It applies to individuals, households, businesses, and institutions. At its core, money management balances current needs (cash flow, debt) with future objectives (retirement, education, capital…

Money Laundering Money laundering is the process of making illegally obtained money appear legitimate. Criminal proceeds from activities such as drug trafficking, fraud, or terrorist financing are “cleaned” so they can be used without drawing suspicion. Financial institutions and regulators use anti‑money laundering (AML) programs to detect and prevent these schemes. Key takeaways Money laundering…

Money Illusion Money illusion is the tendency to think of money in nominal terms (face value) rather than in real terms (value after adjusting for inflation). In other words, people often treat a dollar today as if it has the same purchasing power it had previously, ignoring changes in prices. Key takeaways * Money illusion…

Money Flow Index (MFI) The Money Flow Index (MFI) is a momentum oscillator that measures the flow of money into and out of an asset by combining price and trading volume. Scaled from 0 to 100, the MFI helps traders detect potential reversals and confirm trend strength by weighting price moves with the volume behind…

Money Flow: Definition, Calculation, and Uses in Trading What is money flow? Money flow quantifies the dollar value of trading activity for a security by combining price and volume. It helps traders assess whether buying or selling pressure dominated a period and can indicate potential price direction. How to calculate money flow Calculate the Typical…

What is the money factor? The money factor (also called lease factor, lease fee, or lease money factor) is the financing charge used to calculate the interest portion of monthly lease payments. It’s the lease equivalent of an interest rate but is expressed as a small decimal rather than an annual percentage rate (APR). Key…

Money Center Banks: Overview Money center banks are large financial institutions whose primary lending and borrowing activities occur with governments, large corporations, and other banks rather than with retail consumers. They typically operate in major financial hubs (e.g., New York, London, Tokyo, Hong Kong) and maintain very large balance sheets, making them integral to national…

Money: Functions, Essential Properties, and Types Money is any widely accepted medium used to facilitate exchange, measure value, and store purchasing power. It replaces the inefficiencies of barter by acting as a medium of exchange, a unit of account, a store of value, and a standard for deferred payments. Core functions of money Medium of…

Monetize: Strategies, Types, and Examples Key takeaways * Monetization converts non-revenue activities, assets, or attention into cash or ongoing revenue streams. * Common online methods include advertising, subscriptions, affiliate marketing, and direct sales (products, apps, digital content). * Social platforms monetize both ad inventory and user data to enable highly targeted advertising. * Central banks…

Monetary Policy What is monetary policy? Monetary policy is the set of actions a country’s central bank uses to manage the money supply and influence economic activity. Common objectives are stable prices (low inflation), maximum sustainable employment, and orderly financial markets. Typical tools include adjustments to interest rates, reserve requirements, and open market operations. Key…

Monetary Base Explained What the monetary base is The monetary base (also called base money or high-powered money) is the total amount of highly liquid money created by a country’s central bank. It comprises: * Currency in circulation (banknotes and coins) * Reserves held by commercial banks at the central bank (required and excess reserves)…

Monetary Aggregates Monetary aggregates are standardized measures of the money supply used to assess an economy’s liquidity, inflationary pressure, and financial stability. Central banks, economists, and investors track these aggregates to understand monetary conditions and to anticipate or evaluate monetary policy actions. U.S. monetary aggregates (common definitions) M0 (monetary base): Currency in circulation plus commercial…

Monetarist Theory Definition Monetarist theory holds that changes in the money supply are the primary determinant of a nation’s economic growth and the behavior of the business cycle. In this view, monetary policy—especially central-bank control of the money supply—exerts decisive influence over inflation, output, and employment. Explore More Resources › Read more Government Exam Guru…

Monetarist — Meaning, Overview, and Examples What is a monetarist? A monetarist is an economist or policymaker who believes that the money supply (currency, bank deposits, and credit) is the primary driver of economic activity and prices. Monetarists argue that controlling the growth of the money supply is the most direct and effective way to…

Monetarism: Theory, Mechanisms, and Legacy What is monetarism? Monetarism is a macroeconomic theory that emphasizes the role of the money supply as the primary determinant of economic activity and price stability. Its core claim is that variations in the money supply strongly influence inflation, output, and employment, and that monetary policy — rather than fiscal…

Momentum Investing What is momentum investing? Momentum investing is a strategy that seeks to profit from the continuation of existing market trends. Investors buy securities whose prices are rising (go long) and may short securities whose prices are falling, aiming to ride trends until signs of reversal. Explore More Resources › Read more Government Exam…

Momentum in Trading What is momentum? Momentum measures how quickly a security’s price (or volume) is changing. In trading, momentum strategies seek to profit from the continuation of existing price trends rather than from underlying fundamental value. Traders typically use technical-analysis tools—such as oscillators and trend lines—to identify and act on accelerating moves. Key takeaways…

Mom-and-Pop: Meaning, Examples, and Why They Matter What is a mom-and-pop business? A “mom-and-pop” business is a small, family-owned or independently operated enterprise that relies on personalized service and local customer support. These businesses often prioritize community ties and tailored offerings over scale and mass-market appeal. Key takeaways Mom-and-pop businesses offer personalized service and local…

Understanding Modus Operandi (M.O.) What is modus operandi? Modus operandi (Latin: “way of operating”), commonly shortened to M.O., describes a person’s or group’s habitual pattern of behavior. It highlights predictable routines, methods, or procedures used repeatedly across situations. While the term is often associated with criminal investigations, it applies broadly to individuals, organizations, and cultures….

Modigliani–Miller Theorem (M&M) Overview The Modigliani–Miller theorem (M&M) is a foundational result in corporate finance that states a firm’s market value is determined by the present value of its expected future cash flows and underlying assets, and—under certain idealized conditions—is independent of its capital structure (the mix of debt and equity financing). Historical context Merton…

Modified Internal Rate of Return (MIRR) What is MIRR? The Modified Internal Rate of Return (MIRR) is a financial metric that measures a project’s profitability while using more realistic assumptions than the traditional IRR. MIRR assumes: – Positive cash flows are reinvested at the firm’s cost of capital (or another specified reinvestment rate). – Negative…

Modified Gross Lease A modified gross lease is a hybrid commercial lease that combines features of both gross and net leases. Tenants pay a fixed base rent plus a negotiated share of certain operating expenses. This arrangement is common in multi-tenant office buildings where some costs are allocated to tenants while others remain the landlord’s…