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

Category: Finance Dictionary

MEMO ENTRY

No total increase or decrease occurs from this specific type of balance sheet transaction. Stock splits are a typical use.

MERCHANDISING ALLOWANCE

as a compensation for a retailer’s special promotional efforts, a manufacturer or distributor reduces the wholesale price of a good, leading to this specific type of sales promotion incentive scheme.

METALLURGY

Formulation of metal alloys, uses of metals, and the recovery, refining, properties technology as this specific science.

METRICS

Efficiency, progress, performance, and quality of a plan, process, or product are assessed by these specific standards of measurement .

MICROCONTROLLER

A scaled down, task-specific microcomputer. May/may not have an input or output device. Fuel injectors, security systems, or traffic monitors typically have embedded systems containing a microcontroller.

MICROPAYMENT

Small amount transactions; cost five dollars or less, typically only a few cents . Mostly done with the sale of information over the Internet.

MIDI TAIL

After a claims made liability policy has expired to allow continued claims, this specific type of an extended reporting period is made. No more than 60 days after the policy’s end can

MILKING STRATEGY

Short-term revenue generation strategy. Used by investors to boost stock prices or company revenues and generate profits quickly. It is given a higher priority than longer term concerns: brand development; stability of

MINI

Insurance that only covers one line of risk.

MINIMUM QUOTE SIZE

To be displayed and, therefore, traded on the London Stock Exchange’s stock exchange automated quotation system (SEAQ), this specific type of minimum share count is what market-makers must show. NASDAQ. an American

MINT RATIO

This specific ratio is a comparison of the gold ounce price to the silver ounce price.

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

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