Financial Theory Terms

  1. McGinley Dynamic Indicator

  2. Mean Reversion

  3. Mechanism Design

  4. Media Effect

  5. Median

  6. Mental Accounting

  7. Merger Arbitrage

  8. Merton Model

  9. Mesokurtic

  10. Mezzanine Financing

  11. Microeconomic Pricing Model

  12. Mid-Value Stock

  13. Misery Index

  14. Mode

  15. Model Risk

  16. Modern Portfolio Theory - MPT

  17. Modified Internal Rate Of Return - MIRR

  18. Modified Sharpe Ratio

  19. Modigliani-Miller Theorem - M&M

  20. Mondustrial Policy

  21. Monetarism

  22. Monetarist Theory

  23. Monetary Aggregates

  24. Monetary Theory

  25. Money Factor

  26. Moneyness

  27. Monte Carlo Simulation

  28. Moore's Law

  29. Mountain Range Options

  30. Multi-Factor Model

  31. Multiple Compression

  32. Multiple Discriminant Analysis - MDA

  33. Multiple Linear Regression - MLR

  34. Multiplier

  35. Mumbai Interbank Bid Rate - MIBID

  36. Musawamah

  37. Musharakah

  38. Mutual Fund Cash Level

  39. Mutual Fund Theorem

  40. Mutualization Of Risk

  41. Myron S. Scholes

  42. Natural Law

  43. Negative Correlation

  44. Neglected Firm Effect

  45. Net Exporter

  46. Net Importer

  47. Net Institutional Sales - NIS

  48. Net Margin

  49. Net Present Value Of Growth Opportunities - NPVGO

  50. Net Present Value Rule

  51. Net Profits Interest

  52. Net-Net

  53. Neutral

  54. Neutrality Of Money

  55. New Keynesian Economics

  56. New York Dollar

  57. Nick Leeson

  58. Nominal

  59. Nominal Value

  60. Non-Controlling Interest

  61. Non-Operating Asset

  62. Non-Sampling Error

  63. Nonmonetary Assets

  64. Normal Distribution

  65. Normative Economics

  66. North American Loan Credit Default Swap Index - LCDX

  67. Notching

  68. Nova/Ursa Ratio

  69. Null Hypothesis

  70. NYSE Amex Composite Index

  71. Odd Lotter

  72. Offensive Competitive Strategy

  73. Okun's Law

  74. Operating Cash Flow Margin

  75. Operating Expense Ratio - OER

  76. Operating Revenue

  77. Operational Efficiency

  78. Opportunity Cost

  79. Oprah Effect

  80. Optimum Currency Area Theory

  81. Option Premium

  82. Option Schedule

  83. Organic Sales

  84. Osborning

  85. Outbound Cash Flow

  86. Outcome Bias

  87. Overnight Return

  88. Overreaction

  89. P-Value

  90. Pale Recession

  91. Paradox of Rationality

  92. Paradox Of Thrift

  93. Pareto Improvement

  94. Parity

  95. Payee

  96. Payer

  97. Peak Debt

  98. Peer Review

  99. Performance Drag

  100. Performance-Based Index

Hot Definitions
  1. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  2. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  3. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  4. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  5. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  6. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
Trading Center