Management Buy-In (MBI)

The purchase of a company from its owners by an outside management team.

Management Buyout (MBO)

The purchase of a company from its owners by the existing management team of the company. The managers in other words 'buy out' the owners.

Margin Account

A brokerage account that enables an investor purchase securities with loan from his stockbroker.

Margin Loan

A credit facility which is extended by stockbrokers to their clients to purchase securities. Given the monetary policy implications of margin credits, such activities are usually regulated by central banks as well as securities market regulators.

Mark to Market

The daily settlement of obligations on a future position.

Market Capitalization

The market value of a company's paid-up capital, determined by multiplying the current quoted price by the total number of shares outstanding. The market capitalization of a securities exchange is the aggregate market capitalization of all its quoted securities.

Market Float

The percentage of the aggregate number of shares quoted on a stock exchange or the outstanding shares of a quoted company, which is traded freely on the stock exchange. Markets where the bulk of the outstanding shares is held by institutions and individuals who rarely trade their holdings, would exhibit low float while the reverse would be the case in markets where investors do not "buy and hold".

Market Manipulation

The sale or purchase of a security with the intention of creating an artificial market in it, i.e by giving a semblance of a bull or bear market in the security.

Market Order

An order given to a stockbroker by his client to buy or sell a given quantity of a security at the best price prevailing in the market. 193 Market Price The prevailing price of a security in the stock market

Market-Maker

A dealer who stands ready to buy and sell securities for his own a count at his own risk. By so doing, a market-maker provides liquidity to and maintains stability in the market. (See dealer specialists).

Marketable Amount

The amount of stock or number of shares in which a jobber quoting a price would reasonably be expected to deal. As circumstances differ considerably between active and inactive securities, the amount varies.

Maturity Date

The redemption or expiry date of a debt.

Member Firm

A firm licensed by a stock exchange to carry out brokerage services and deal for its own account.

Merger

The fusion of two or more companies usually on equal terms.

Money Market Mutual Fund

A mutual fund whose policy is to invest in short-term instruments such as treasury bills/certificates, commercial papers, certificates of deposit, etc.