A mission statement is a formal summary that defines the vision, values, and purpose of a corporation. It serves as a guiding principle for the organization's strategic planning and public messaging.
A missionary salesperson is a type of sales representative that works primarily to build relationships and promote products or services rather than directly closing sales. They focus on education, awareness, and creating demand within a particular territory.
Falsification of birth date by an applicant for a life or health insurance policy. If the company discovers that the wrong age was given, the coverage will be adjusted to reflect the correct age according to the premiums paid in.
In law, a mistake refers to an act or omission arising from ignorance or misconception which may justify rescission of a contract or exoneration of a defendant from tort or criminal liability depending on its nature or the surrounding circumstances.
A mistake of law refers to a misunderstanding or ignorance of the legal consequences of one's actions, even if one is aware of the facts and substance of those actions.
The principle that obligates an injured party to take reasonable actions to reduce the damages caused by another party's breach or tortious conduct.
The term 'mix' is versatile and applicable across different industries such as broadcasting, retailing, and marketing. Its core meaning involves the combination or blending of various elements to create a cohesive and functional whole.
Mix variances are a set of accounting metrics that assess the financial impact of differences between actual and standard input combinations used in production or sales. These measures help identify inefficiencies or deviations that may affect profitability.
An economic system combining private and public enterprise, where both market forces and government intervention are used to determine the allocation of resources and prices.
Mixed signals occur when an unclear message is conveyed, often comprising two or more contradicting elements, leading to confusion in interpretation.
An abbreviation that can refer to different terms such as Money Order or Modus Operandi, depending on the context.
Mobile commerce (M-commerce) involves electronic commerce transactions conducted using wireless devices and Internet access instead of traditional PC-based technology. It allows users to shop, bank, pay bills, and conduct other commercial transactions directly from their mobile devices.
Mode refers to the manner of existing or acting; way, method, or form. In statistics, it represents the most commonly occurring value in a data set.
A model unit refers to a representative product, such as a home, apartment, or office space, used as part of a sales campaign. It demonstrates the design, structure, and appearance of units in a development to potential buyers.
Modeling refers to designing and manipulating a mathematical representation that simulates an economic system or corporate financial application to study and forecast the effects of changes.
A modem is a device that links computer systems via telephone lines, enabling computers in different locations to exchange information. It is short for modulator-demodulator. Modems convert telephone impulses to computer-interpretable impulses, requiring a modem at each end of the communication link to send or receive converted impulses.
Modern Portfolio Theory (MPT) is an investment strategy aimed at balancing risk and return by systematically constructing diversified portfolios. This involves including both risky and risk-free securities that exhibit some degree of counteracting performance.
Modernizing refers to making various improvements and updates to a property, such as installing new equipment, making cosmetic enhancements, and removing outdated features. This process enhances the functionality and aesthetic appeal of the property.
MACRS is a method of depreciation used in the United States to recover the cost of tangible property over a specified life span. Introduced by the Tax Reform Act of 1986, MACRS replaces the Accelerated Cost Recovery System (ACRS) and offers a faster depreciation schedule for tax purposes.
MACRS is a depreciation method introduced in 1986 to calculate tax depreciation for property placed in service after its inception. It allows businesses to recover the cost basis of certain property more quickly, by assigning longer lives for personal property and offering conventions for calculation.
MACRS is a depreciation system in the USA designed to encourage capital investment by businesses. It enables a quicker recovery of an asset's cost by allowing greater depreciation deductions in the earlier years of an asset's life.
Modified accrual accounting is a governmental accounting method where revenues are recognized when they become available and measurable, and expenditures are recognized when the related fund liability is incurred.
Modified Adjusted Gross Income (MAGI) is a measure used by the IRS to determine eligibility for certain tax credits, deductions, and additional taxes. It starts with Adjusted Gross Income (AGI) from federal Form 1040 and adds back certain tax-exempt interest income and other deductions.
A modification of the historical-cost convention in which certain assets are included at revalued amounts rather than their original cost. This approach is permitted under specific regulations such as the Companies Act.
Modular housing refers to dwelling units constructed from components prefabricated in a factory and subsequently assembled on-site. This method is distinct from traditional on-site construction and offers various benefits including reduced construction time, cost savings, and minimized environmental impact.
Modus Operandi (MO) refers to the manner of operation or the specific method used by an individual to accomplish an act. It is particularly used to describe the characteristic techniques or strategies employed by individuals in their activities, commonly in contexts such as business dealings, criminal behavior, or operations management.
A small retail store with limited capital, typically employing family members, and often characterized by personalized customer service and unique product offerings.
Momentum refers to the rate of acceleration of an economic, price, or volume movement. It signifies the strength and likelihood of continued growth in these areas.
A trader in the stock or commodities market who identifies a trend in the price movement of a security and rides the trend as long as it is profitable.
A monetarist is an economist who believes that the money supply is the key to the ups and downs in the economy. Monetarists, such as the late Milton Friedman, think that the money supply has far more impact on the economy's future course than, say, the level of federal spending.
Pertaining to, or having to do with, money, money creation, money supply, and government management of money.
Monetary assets and liabilities represent specific sums of money that are either receivable or payable, captured in a company's financial statements, including cash, bank balances, loans, debtors, and creditors.
The monetary base is the most narrow definition of the money supply, equal to the amount of currency in circulation plus the reserves held by commercial banks at the central bank. In monetary terminology, it is designated as M0.
A monetary item is an asset or liability whose amounts are fixed or determinable in dollars without reference to future prices of specific goods or services. Their economic significance depends heavily upon the general purchasing power of money.
The monetary measurement convention in accounting demands that transactions be recognized in financial statements only if they can be measured in monetary terms. This convention assumes money as a stable unit of measurement and discourages the inclusion of non-monetary assets.
Monetary policy comprises the procedures by which governments or central banks try to affect macroeconomic conditions by influencing the supply of money. This can be achieved through various mechanisms aside from printing more money, including open-market operations, adjusting reserve requirements, and changing interest rates.
The committee of Bank of England officials and outside economic experts that has been responsible for setting interest rates in the UK since 1997. Prior to this date, interest rates were set by the Treasury.
The Monetary Policy Committee (MPC) is a body within central banks that is responsible for setting the interest rates and other monetary policies to achieve economic stability and growth.
Monetary reserve refers to a government’s stockpile of foreign currencies and precious metals used to support its currency. It is also the Federal Reserve Board's requirement for banks to keep a certain proportion of their deposits in cash or near-cash equivalents.
A Monetary Standard is the set of procedures or policies that a government uses to ensure the value and reliability of its currency, fostering faith among the public and international markets.
A monetary union refers to an agreement among two or more countries to adopt a single currency, thereby removing exchange rate risk within the union and promoting greater economic stability and integration.
Monetary Working Capital Adjustment refers to the changes made to the working capital of a company to reflect its current operational needs and financial health. It involves adjusting the components of working capital to ensure that they are aligned with the company’s operational activities and financial strategies.
Monetizing the debt refers to the process by which a government finances its national debt by printing new money, which often leads to inflation.
Money serves as a medium of exchange, a unit of account, a store of value, and a means for deferred payment. It has driven economic development by simplifying the exchange of goods and services.
A Money Center Bank is one of the largest banks located in major financial hubs around the world, including cities like New York, Chicago, San Francisco, Los Angeles, London, Paris, and Tokyo. These banks wield significant national and international influence.
A comprehensive guide to understanding the money demand schedule, which represents the demand for money at varying levels of GDP. This includes the asset demand for money and the transactions demand for money.
An industry-standard measure reflecting the average yields from leading money market funds, providing crucial insights for investors.
The misconception that an increase in nominal income or wealth translates directly to an increase in real purchasing power, despite similar rises in price levels.
Income measured only in monetary terms, without adjusting for changes in purchasing power due to inflation or deflation.
Money laundering is the illicit process of disguising the profits of criminal activities as legitimate income. Involving multiple stages, including placement, layering, and integration, it aims to hide the origin, existence, or use of illicitly gained funds.
The money market is a wholesale financial market dedicated to short-term borrowing and lending with instruments like Treasury bills, trade bills, and bills of exchange, traditionally concentrated in areas like Lombard Street in London.
A Money Market Fund is an open-ended mutual fund that invests in short-term, highly liquid and safe securities, providing investors with money market rates of interest. The net asset value generally remains constant at $1 per share, while the interest rate varies.
An agreement between a bank and a company that provides the company with the ability to borrow up to a certain limit each day in the money markets, typically on a short-term basis, often overnight or up to one month.
A money order is a financial instrument that can be easily converted into cash by the payee named on the money order. It provides a secure way to transfer a specified amount of money.
Money supply refers to the total stock of money available in an economy at a given point in time. It includes various forms of liquidity to measure how easily people can access financial assets.
The money supply measures the amount of money circulating in an economy, categorized into different components such as M1, M2, and M3, which include cash, checking deposits, savings deposits, and other financial instruments.
A monitor is generally a device or program that keeps track of or displays information. In the context of computers, it refers to a program that supervises other software activities or a device that accepts video signals from a computer and displays them visually.
Monoline insurers provide guarantees to bond issuers to enhance their creditworthiness. After being highly active in the mid-2000s, particularly in complex structured finance instruments, they faced significant losses due to the subprime lending disaster of 2007.
A monopolist is a firm or individual entrepreneur that is the sole producer of a good and represents the entire market supply of that good. This exclusive control allows the monopolist to influence the price and quantity of the product in the market.
A market situation in which the products supplied are not perfect substitutes, thereby allowing the suppliers to exert some monopoly power. Each firm attempts to establish its brand as a distinctive and superior form of the product, which allows it to command a higher price than other suppliers.
Monopoly refers to the control of the production and distribution of a product or service by one firm or a group of firms acting in concert, characterized by the absence of competition, leading to high prices and a general lack of responsiveness to consumer needs.
The monopoly price is the price arrived at in a market where the supply is controlled by a monopoly, typically higher than the price that would prevail under competitive conditions.
A market situation where there is only a single consumer of a good or service produced, giving that consumer substantial control over prices and terms.
A Monte Carlo simulation is a technique used to understand the impact of risk and uncertainty in prediction and forecasting models. In finance, it is extensively applied to price complex derivatives, manage financial risk, and facilitate decision-making processes.
Monte Carlo Simulation is a computational algorithm that relies on repeated random sampling to obtain numerical results. It's particularly useful for assessing the probability distributions of complex systems.
A month-to-month tenancy is a lease agreement that allows tenants to reside in a property on a month-by-month basis, with the option to extend or cancel the agreement at the end of each month.
A monthly investment plan is a strategy where an investor places a fixed dollar amount into a particular investment instrument every month. This approach aids in building a position at advantageous prices through the method of dollar cost averaging.
Canada's oldest stock exchange and second-largest in dollar value of trading, known for trading stocks, bonds, futures, and options through a specialist system combined with automated systems.
A fixed object and point established by surveyors to determine land locations.
Moody's Investment Grade ratings, provided by Moody's Investors Service, play a crucial role in evaluating the creditworthiness of municipal short-term debt securities. These ratings help investors and financial institutions make informed decisions by classifying securities as MIG-1, 2, 3, and 4 to signify best, high, favorable, and adequate quality, respectively. All these ratings are considered investment grade or bank quality.
Moody's Investors Service is a preeminent financial services company headquartered in downtown Manhattan. It stands among the three most well-known bond-rating agencies in the United States, alongside Fitch Ratings and Standard & Poor's.
Moonlighting refers to the practice of employees taking on a second job, often at night, in addition to their primary employment to increase their income.
A moot point refers to a matter that remains debatable or open to discussion, often rendering it insignificant for practical purposes due to its academic nature or the improbability of reaching a consensus.
Moral hazard refers to the situation where an entity has the incentive to take on excessive risks because it does not fully bear the consequences of those risks. This is a common concern in sectors such as banking, insurance, and finance, particularly when entities are perceived as 'too big to fail' and expect potential government bailouts.
Moral law refers to the behavioral standards that underpin the morality of a civilization, often informed by religious, cultural, or philosophical principles.
A moral obligation bond is a tax-exempt bond issued by a municipality or a state financial intermediary and backed by the moral obligation pledge of a state government. The state's obligation to honor the pledge is moral rather than legal because future legislatures cannot be legally obligated to appropriate the funds required.
Moral suasion is a strategy used primarily by central banks like the Federal Reserve to influence financial institutions and markets through persuasion or appeal to ethical standards, rather than through direct action or legislation.
Morale is the collective feeling or attitude in a workgroup that significantly impacts motivation and goal achievement. A high morale typically results in increased productivity and a positive work environment.
A moratorium provides critical financial relief in situations where debt repayment is hindered by economic or market crises, offering time for debtor recovery and maintaining market stability.
The term 'more or less' is used in legal contracts to allow for a slight deviation from the specified amount or measurement. For example, land described as 100 acres, more or less, means the contract remains valid even if the land is slightly more or less than 100 acres.
Chicago-based company best known for evaluating MUTUAL FUNDS. Morningstar rates funds from one to five stars, using a risk-adjusted performance rating in which performance equals total return of the fund.
A mortality table, also known as a life table or actuarial table, is a statistical chart used to represent the probability of death of individuals in various age groups within a given population. It shows the rate of death at each age in terms of the number of deaths per thousand people.
A mortgage is a legal agreement by which a sum of money is lent to a borrower for purchasing property, with the property serving as collateral. The borrower is the mortgagor, and the lender is the mortgagee.
A mortgage assumption is a financial arrangement where a buyer takes over the seller's existing mortgage, continuing to make payments under the same terms.
A mortgage banker is a financial individual or institution that originates, sells, and services mortgage loans. Unlike traditional banks or thrifts which fund loans from deposit accounts, mortgage bankers typically use funds from the sale of the mortgages.
In the United States, a mortgage bond is a type of bond secured by a real asset, such as land or property. These bonds often include provisions defining the prioritization of claims in case of default.
A Mortgage Broker is an intermediary who brings mortgage borrowers and mortgage lenders together but does not use their own funds to originate mortgages. A mortgage broker helps potential borrowers find a lender with the best terms and rates to meet their financial needs. In return for this service, the mortgage broker receives a commission which can be paid by either the borrower, the lender, or both.
A detailed understanding of a mortgage commitment helps both borrowers and lenders formalize the loan process and prepare for property transactions.
The Mortgage Constant is the percentage ratio between the annual debt service and the loan principal.
A Mortgage Correspondent is an entity or individual who services loans for a fee and plays an intermediary role between borrowers and lenders. This entity may also include underwriting and originating loans.
Mortgage debt refers to the amount of money owed under a mortgage, which is a type of loan used particularly for financing the purchase of real estate.
Mortgage discount refers to the amount of principal that lenders deduct at the beginning of a loan as part of the loan agreement terms, which is often linked to discount points.
Insurance typically required by lenders for borrowers with a down payment less than 20%, indemnifying the lender in the case of foreclosure.
A Mortgage Insurance Policy is designed to protect lenders and borrowers in mortgage agreements by covering payments in certain situations, such as default or borrower death.
Mortgage Insurance Premium (MIP) is the fee paid by a mortgagor to obtain mortgage insurance on a mortgage loan. This fee can be collected as a lump sum at loan closing, as part of the monthly payment, or both.
The mortgage interest deduction is a tax incentive provided to homeowners, allowing them to reduce their taxable income by the amount of interest paid on a qualified home loan. This deduction is a substantial financial benefit for many taxpayers, promoting homeownership.
A mortgage lien is an encumbrance on property used to secure a loan. The lien holder has a claim to the property in the event of a loan default.
Mortgage Life Insurance is a type of term life insurance specifically designed to pay off the remaining mortgage debt in the event of the policyholder's death, thus ensuring that the surviving household members are not burdened with the mortgage debt.
Legislation and U.S. Treasury Department actions aimed at providing lenders with incentives to work with borrowers to avoid foreclosure.
A mortgage note is a legal document that states the names of the borrower and lender, the amount borrowed, the interest rate, repayment terms, and other loan provisions. While the mortgage pledges the property as collateral, the mortgage note outlines the debt and the repayment requirements.
