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Medallion Signature Guarantee: What It Is and How It Works What is a Medallion signature guarantee? A Medallion signature guarantee is a certification used when transferring ownership of securities (for example, physical stock or bond certificates). The guarantee verifies that a signature authorizing the transaction is genuine and that the signer is entitled to transfer…

Mean-Variance Analysis Mean-variance analysis is a framework for evaluating investments by comparing expected return (the mean) with risk (measured by variance or standard deviation). It is a core component of Modern Portfolio Theory (MPT) and helps investors choose portfolios that either maximize return for a given level of risk or minimize risk for a given…

Mean Reversion What is mean reversion? Mean reversion is the idea that an asset’s price, returns, or other financial measures (e.g., P/E ratio, interest rates, volatility) tend to move back toward their long-term average (the “mean”) after deviating from it. Traders and investors use this tendency to identify overvalued or undervalued opportunities and to time…

McKinsey 7-S Model Overview The McKinsey 7-S Model is a diagnostic and design framework for organizations. It identifies seven interdependent internal elements that must be aligned for an organization to perform effectively and execute strategy. The framework was developed at McKinsey & Company in the late 1970s and remains widely used for strategic planning, change…

MCF (Measuring Natural Gas) Key takeaways * MCF stands for “thousand cubic feet” and is a common unit for measuring natural gas in the United States. * 1 MCF ≈ 1,000,000 BTU (about one million British Thermal Units). * The Roman numeral M denotes one thousand; MMCF is commonly used for one million cubic feet….

McClellan Oscillator Key takeaways A market-breadth indicator based on advances minus declines across an exchange (e.g., NYSE, NASDAQ). Calculated as the difference between a 19-day EMA and a 39-day EMA of advances−declines (or an adjusted net-advances series). Readings above zero generally confirm index strength; readings below zero confirm weakness. Large moves from negative to positive…

Maximum Loan Amount A maximum loan amount (or loan limit) is the largest sum a lender will authorize a borrower to access on a loan, credit card, or line of credit. Lenders set this cap during underwriting based on the borrower’s financial profile, the type and purpose of the loan, and the lender’s own risk…

Maximum Foreseeable Loss (MFL) Definition Maximum Foreseeable Loss (MFL) is an insurance concept that represents the worst credible financial loss a policyholder could suffer if insured property is severely damaged or destroyed and primary safeguards fail. It’s commonly used for business property insurance and captures both physical damage and the resulting business interruption. How MFL…

Maximum Drawdown (MDD) Maximum drawdown (MDD) measures the largest decline in an investment’s value from a historical peak to the subsequent trough before a new peak is reached. It highlights downside risk and the worst loss an investor would have experienced over a specified period. Why MDD matters Shows the most severe single loss over…

Max Pain Max pain (or the max pain price) is a concept in options trading describing the strike price at option expiration that would cause the greatest combined dollar loss for option holders (puts and calls). The maximum pain hypothesis suggests that as expiration approaches, the underlying stock’s price tends to move toward that strike,…

Maturity Date What is a maturity date? A maturity date is the date when a debt instrument—such as a bond, certificate of deposit (CD), mortgage, or loan—must repay its principal and any accrued interest. It marks the end of the legal obligation between borrower and lender or issuer and investor. After maturity, regular interest payments…

Understanding Maturity Dates: Types, Impacts, and Examples Key takeaways Maturity is the agreed date when a financial instrument’s obligations are settled—typically repayment of principal and interest or delivery of an asset. Maturity affects interest rates, liquidity, and risk; longer maturities generally command higher yields. Different instruments treat maturity differently (deposits, bonds, derivatives, FX). Investors should…

What Is a Mature Industry? A mature industry is one that has passed the emerging and high-growth stages of its lifecycle and reached a relatively stable, established phase. Companies in mature industries are typically larger, older, and more predictable in earnings and cash flow than younger firms. Where it Fits in the Industry Lifecycle Emerging…

Material Requirements Planning (MRP) Material Requirements Planning (MRP) is a software-based system that helps manufacturers determine what materials are needed, in what quantities, and when to meet production schedules while minimizing inventory. It translates a production plan into specific requirements for subassemblies, parts, and raw materials, enabling more efficient purchasing and production planning. Key takeaways…

Material Participation Tests Key takeaways * Material participation determines whether income or losses from a trade, business, rental, or other activity are treated as active (allowing full loss deduction subject to other limits) or passive (subject to passive loss limitations). * A taxpayer (or spouse) meets material participation if they satisfy any one of seven…

Matching Orders Matching orders is the process exchanges use to pair buy and sell orders so trades can be executed. Modern equity, options, and derivatives markets perform this task electronically using rules and algorithms that determine which orders get filled and in what order. How order matching works A buy and a sell order match…

Mastercard Mastercard is a global payments network that enables electronic payments between consumers, merchants, issuers (card-issuing banks) and acquirers (merchant banks). It provides the infrastructure and processing rules that route transactions for Mastercard-branded credit, debit, and prepaid cards issued by partner financial institutions. How it works Mastercard operates an open-loop network: cards bearing the Mastercard…

Master of Public Administration (MPA) What is an MPA? A Master of Public Administration (MPA) is a professional graduate degree that prepares individuals for leadership, management, and policy implementation roles in government, nonprofit organizations, and international agencies. It emphasizes practical skills for administering public programs, managing organizations, and applying policy in real-world settings. How it…

Master of Business Administration (MBA) What is an MBA? A Master of Business Administration (MBA) is a graduate degree focused on advanced training in business management, leadership, and specialized business functions (finance, marketing, operations, etc.). It is designed to deepen strategic, analytical, and interpersonal skills that prepare graduates for management roles, career advancement, or a…

Master Limited Partnerships (MLPs) A master limited partnership (MLP) is a publicly traded limited partnership that combines the tax benefits of a private partnership with the liquidity of a public company. MLPs are most commonly found in the natural resources and real estate sectors and typically provide steady cash distributions to investors. How MLPs are…

Master-Feeder Structure A master-feeder structure is a fund architecture commonly used by hedge funds to pool capital from different types of investors—typically U.S. taxable investors and non-U.S. or tax-exempt investors—into a single central fund (the master) for investment purposes. Separate feeder funds collect investor capital and invest that capital into the master fund, which executes…

Mass Production What is mass production? Mass production is the large-scale manufacture of standardized products using mechanized methods, assembly lines, and automation. It relies on repeatable processes, division of labor, and controlled material flow to produce many identical items efficiently and at lower per-unit cost. Alternative terms include flow production, repetitive flow production, series production,…

Mass customization Mass customization is the practice of producing goods or services that customers can tailor to their needs while retaining many of the cost advantages of mass production. It blends personalization and flexibility with standardized, interchangeable components and efficient manufacturing processes. Key takeaways Enables customers to specify features of a product without paying full…

Marxism Key takeaways Marxism is a social, political, and economic theory developed by Karl Marx that critiques capitalism and envisions a classless society. Central concepts include historical materialism, class struggle (bourgeoisie vs. proletariat), alienation, and the labor theory of value. Marx argued that capitalists extract surplus value from workers, producing exploitation that would eventually lead…

Marxian Economics Marxian economics is the body of economic theory derived from Karl Marx’s analysis of capitalism. It centers on the role of labor in producing value, critiques how market relations and private ownership shape income and power, and highlights tendencies within capitalist systems that Marx argued lead to exploitation and crisis. Key ideas at…

Martial Law Key takeaways Martial law places military authorities in charge of governance and law enforcement, replacing or overriding civilian institutions. It is typically declared during severe crises—insurrections, widespread unrest, coups, or military occupation—to restore order. Civil liberties such as freedom of movement, speech, protection from unreasonable searches, and habeas corpus may be suspended; military…

Married Put: Definition and Overview A married put (also called a protective put) is an options strategy in which an investor buys a put option on a stock at the same time they purchase (or while they hold) a long position in that same stock. The put provides downside protection—like insurance—while the investor retains the…

Married Filing Separately — What it Is and When to Use It Key takeaways * Married filing separately (MFS) is a filing status where each spouse files their own federal tax return, reporting only their individual income, exemptions, and deductions. * MFS can help when one spouse has large deductible expenses (for example, medical costs)…

Married filing jointly Married filing jointly is a federal income tax filing status in which a married couple files a single tax return that reports both spouses’ income, deductions, credits, and exemptions. For most couples, it produces a lower combined tax liability and access to more tax benefits than filing separately. Key takeaways Available to…

Markup What is a markup? A markup is the amount added to the cost of a product or security to determine its selling price. It represents the seller’s gross profit margin and can be expressed as a fixed amount or as a percentage of cost. Markups in investing In securities markets, a markup is the…

MiFID Explained: EU Financial Regulation for Transparency and Disclosures What MiFID is The Markets in Financial Instruments Directive (MiFID) is an EU regulatory framework that standardizes rules for investment services and increases transparency across European financial markets. Originally adopted in 2004 and effective from 2007, MiFID was mainly focused on equities. It was replaced and…

Marketing Strategy Key takeaways A marketing strategy is a high-level plan that defines a company’s value proposition, target customers, and how it will use the four Ps (product, price, place, promotion) to reach goals. Strategies create a sustainable competitive advantage; plans translate strategy into specific campaigns and timelines. Good strategies include measurable goals, customer profiles,…

Marketing Plan: Purpose, Types, and How to Write One What is a marketing plan? A marketing plan is an operational document that describes how a company will promote its products or services, reach target customers, and measure results. It translates a company’s marketing strategy into specific campaigns, channels, schedules, budgets, and performance metrics. Key takeaways…

Marketing Mix A marketing mix is a strategic framework that guides how a company brings a product or service to market. The classic model organizes marketing decisions around the “4 Ps”: Product, Price, Placement, and Promotion. For service-oriented businesses, three additional Ps—People, Process, and Physical evidence—are often added to form the “7 Ps.” Key takeaways…

Marketing campaigns Marketing campaigns are coordinated, goal‑oriented efforts that use one or more marketing channels to achieve a specific business objective—such as launching a product, increasing sales, growing brand awareness, or repairing reputation. Campaigns combine strategy, creative assets, media choices, and measurement to move a target audience toward a desired action. Key takeaways A campaign…