Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
25 terms, all of them on this page
M
Maintenance Margin
A maintenance margin is the minimum equity you must keep in a margin account to avoid a margin call. Learn how it works, what triggers margin calls, and how to manage risk when trading with leverage.
Management Fee
A management fee is the ongoing charge paid to an investment manager, usually a fixed percentage of assets under management. Learn how it’s calculated, where it hides, and how to keep fees from quietly eroding your returns.
Margin
Margin measures how much profit a company keeps from its revenue, expressed as a percentage. Learn how different margins work, what drives them, and how investors use them to judge business quality.
Margin Account
A margin account lets you borrow money from your broker to buy securities, using your investments as collateral. Learn how margin really works, the risks behind the leverage, and how smart investors actually use it.
Margin Call
A margin call happens when your brokerage demands more cash or securities because your margin account equity has fallen below required levels. Learn what triggers margin calls, how they work, and how smart investors avoid forced selling.
Margin of Safety
A margin of safety is the gap between a stock’s intrinsic value and its market price, typically expressed as a percentage discount. Learn how investors use it to manage risk, value stocks, and avoid permanent capital loss.
Margin Trading
Margin trading is the practice of borrowing money from your broker to invest, using your existing assets as collateral. Learn how it works, why it magnifies gains and losses, and when smart investors use-or avoid-it.
Market & Valuation Ratios
Market & valuation ratios compare a company’s stock price to its fundamentals like earnings, sales, or cash flow. Learn how investors use them to judge whether a stock-or the entire market-is expensive or cheap.
Market Capitalization
Market capitalization is the total market value of a company’s outstanding shares, calculated as share price × shares outstanding. Learn how investors use it to size risk, compare companies, and build smarter portfolios.
Market Correction
A market correction is a decline of 10% to 20% from a recent market high. Learn what causes corrections, how they play out, and how smart investors respond without panicking.
Market Cycle
A market cycle is the recurring pattern of expansion and contraction in asset prices, typically moving through bull and bear phases. Learn how cycles form, how long they last, and how smart investors position portfolios across each stage.
Market Efficiency
Market efficiency describes how quickly and accurately asset prices reflect available information. Learn how efficient markets really are, what drives them, and how investors should adapt.
Market Maker
A market maker is a firm or trader that continuously quotes buy and sell prices to provide liquidity in a security. Learn how they work, how they make money, and what their presence means for your trades.
Market Order
A market order is an instruction to buy or sell a security immediately at the best available price. Learn how it really works, when to use it, and when it can quietly hurt your returns.
Maximum Drawdown
Maximum drawdown measures the largest peak-to-trough loss an investment suffers over a period. Learn how to calculate it, why it matters, and how smart investors actually use it.
MIC Code
A MIC Code is a four-character ISO identifier that uniquely identifies a financial market or trading venue. Learn where it shows up, why it matters for trades, and how investors should use it.
Mid Cap
A mid cap is a publicly traded company with a market value typically between $2 billion and $10 billion. Learn why mid caps often offer the best balance of growth and risk for long-term investors.
MiFID II
MiFID II is a European Union regulatory framework governing how investment firms trade, report, and charge clients for financial services. Learn how it affects your costs, research access, and trade execution as a retail investor.
Modern Portfolio Theory
Modern Portfolio Theory is an investment framework that builds portfolios to maximize expected return for a given level of risk using diversification and correlation. Learn how it works, where it breaks down, and how investors actually use it.
Momentum Investing
Momentum investing is a strategy that buys stocks showing strong recent price performance and sells those losing steam. Learn how momentum works, what drives it, and how to use it without getting whipsawed.
Monetary Policy
Monetary policy is how a central bank controls interest rates and money supply to manage inflation, employment, and economic growth. Learn how it moves markets and how investors should respond.
Money Supply
The money supply is the total amount of money-cash and bank deposits-available in an economy at a given time. Learn how it’s measured, what drives it, and how changes impact inflation, markets, and your portfolio.
Moral Hazard
Moral hazard occurs when someone takes greater risks because they don’t bear the full consequences of failure. Learn how it shows up in markets, bailouts, and investing decisions-and how to protect your portfolio.
Moving Average
A moving average is a technical indicator that smooths price data by averaging it over a set number of periods, such as 50 or 200 days. Learn how investors use it to spot trends, manage risk, and time decisions.
Mutual Fund
A mutual fund pools money from many investors to buy a diversified portfolio of stocks, bonds, or other assets, priced once per day at net asset value. Learn how mutual funds work, what drives returns, and how to use them wisely in your portfolio.