Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

MINUS TICK

Selling a security at a lower price than the previous transaction of sale.

MISTAKE IN JUDGMENT

A court order or judgment recorded with a clerical or typographical mistake. A party to the case must apply to have the error corrected by the erring court.

MOBILE MONEY

Transfer funds between banks or accounts, deposit or withdraw funds, or pay bills by mobile phone. Purchase items, whether physical or electronic, by mobile phone.

MODIGLANI-MILLER HYPOTHESIS

Proposition that a firm’s capital cost is independent from the capital type employed in an efficient capital market. Debt, ordinary shares or common stock sold, retained dividend earnings, or any combination of

MOMENTUM INVESTING

High volume and rapidly rising or dropping prices make target stocks in this type of trading strategy.

MONOLINE

One particular branch of the financial industry is the sole focus of this type of financial company. It chooses one focus on one product to become very specialized in all the aspects

MORAL OBLIGATION BOND

A commitment that is ‘moral’ and not legal because succeeding legislatures are not obligated to abide by such provisions made by preceding legislatures. Municipality, or other governmental entity, issued debt obligation lacking

MORTALITY GUARANTEE

no matter the changes to the mortality rate the annuitant will receive an income for life based on this specific type of clause.

MORTGAGE PARTICIPATION CERTIFICATE

A security holding partial ownership within a pool of other partial mortgage owners. These other mortgages are owned by a federally insured mortgage holder, like Freddie Mac. Also known as pass-through security.

MOVING EXPENSE DEDUCTION

When an individual or family relocates for a new job or job transfer, this tax deduction is applicable. The expenses must be well documented with receipts. Packing, shipping, moving, storage, and transportation

MULTICAST BACKBONE (MBONE)

Internet sub-networks and routers in a virtual network specifically designed to carry heavy data traffic such as multimedia transmission for audio/video conferencing, as well as weather satellite images. Mbone allows simultaneous transmission

MULTIFUNCTIONAL WORKER

A cell in lean production methods handles several different machines and operations by one trained employee.

MUNICIPAL UTILITY DISTRICT (MUD)

Providing utility-related services such as water, sewage, and drainage services is the job of this specific type of political entity. Enacted by state law and funded by special assessment bonds. One’s property

NAKED POSSESSION

without any legal right to do so, one’s occupying real property or having physically possessing a material object.

NATIONAL ASSOCIATION OF EXPORT COMPANIES

Banking, law, accounting, insurance, and customs information for international trade is provide to international business people by this specific type of organization. Organization members are those interested in commerce that crosses national

NAVIGATION MAP

Finding one’s way around a website, locating areas of interest, and accessing other associated websites using a specific set of information and links. Also known as site map.

NEGATIVE COVENANT

1. Constraining provision in a debt agreement, like an adhesion contract type. Limits the borrower on stated points, like a ceiling on the executives’ salaries, or prohibition on debt acquisition, or tight

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