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

Category: Finance Dictionary

MONEY TRANSFER

Moving money electronically or physically to a specified account or person from another specified account or person. Western Union is a company that transfers money.

MONSOON

South Asian landmass comprising of Bangladesh, Burma, Ceylon, India, Nepal, and Pakistan experience this specific type of seasonally heavy rains carried by high winds from Indian Ocean. The middle of July to

MORBIDITY TABLE

Disease, illness, injury, or sickness occurrence rates among people grouped and categorized by age or other factor like occupation collected as matrixed data by insurance companies.

MORTGAGE INSURANCE

Mortgage lenders protection policy for default events. Government agencies often require mortgage insurance as part of a loan agreement. The borrower/mortgagor buys it. Also refer to mortgage redemption insurance.

MOTIVATING

Influencing the way people think or behave individually or in groups by incentives, persuasion, or mental and physical stimulants.

MULIPLEXER

To allow two or more signals to pass over one communication circuit, like a phone line, this specific type of electronic device combines the signals. At the receiving end, the combined signal

MULTIDIMENSIONAL MEASURE

Typically expressed as a ratio, such as miles per gallon, kilometers per hour, grams per cubic meter this type of measure indicates a relationship between two or more units.

MULTIMODAL BILL OF LADING (B/L)

B/L issued from origin to destination for different ships and/or different transportation aircraft, railcars, ships, trucks carrying containerized door-to-door shipments. The principal carrier or the freight forwarder issuing the multimodal B/L has

MULTIPLE OPTION PLAN

An HMO, PPO, or a major health plan are employee choices under this specific type of plan.

MULTI-STEP FLOW THEORY

A theory stating that information moves in multiple directions as each consumer of this information passes it on along with their own interpretation of it. This information usually is from media outlets.

MUTUALITY OF CONTRACT

The requirement that all rules must apply to all parties to a contract for the contract to be enforceable. Otherwise, the contract must be rejected by all parties. No party is allowed

NARROW MOAT

A small competitive advantage one company may have over other competing firms operating in the same or similar industries. A narrow moat provides a very limited economic benefit lasting a short time,

NEGATIVE AMORTIZATION

Expected condition with an increasing principal amount increases following each monthly installment payment. Graduated payment mortgages (GPM) designed to match young executives or professionals with low starting income but high, rapid growth

NEGOTIATION OF A BILL

A bill of exchange transfers to an entity that becomes the new holder from its current holder.

NET CAPITAL

For semi-liquid assets as cash at their full value, this is an asset’s net worth less deductions .

NET INCOME

In an accounting period the total revenue minus all periodic expenses. When income taxes and interest are not deducted, it is known as operating profit or loss, if negative. Also known as

NET LINE

In a reinsurance surplus treaty on a particular risk, the original insurer’s retained insurance amount. Also refers to the an insurer’s maximum loss amount exposure unless reinsured.

NET PRICE

After deducting all discounts and rebates, one has a final price.

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