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

Category: M

MONOPOLISTIC STATE FUND

Some states’ laws require firms to buy workers compensation insurance from that state’s government. Private insurers are prohibited from selling insurance in these states. The state-run company that sells this insurance in

MORALE HAZARD

Circumstance increasing loss-occurrence probability or abnormal loss due to an insurance policy applicant’s indifferent attitude after policy issuance. The insured being careless in locking the doors and windows when leaving home is

MORTGAGE CLAUSE

Usually included as an attachment as a part of an insurance policy, this type of provision makes an insurance claim payable to both a policy holder, as the mortgagor, as well as

MOSAIC THEORY

1. In Investing, this is a CFA Institute recognized method, a valid corporation-value analysis method, using both public and non-public data and using both material and non-material sources. Based on information gathered,

MTA INDEX

This represents the treasury stocks market-listed for a 12-month period. Prior year figures and current market values are the basis to the amounts.

MULTICULTURAL ORGANIZATION

To contribute freely, and achieve individual potentials for one’s own and their organization’s benefit, this type of organization welcomes employees of varied backgrounds, cultures, ethnicities, and experiences.

MULTILATERAL INVESTMENT GUARANTY AGENCY (MIGA)

Established in 1988 as a World Bank Group division, it was to encourage private foreign investors to direct investment in developing countries. Non-commercial risks mitigation insurance and investment guarantees is what MIGA

MUTUAL AGENCY

Each partner’s right in a partnership to act as an agent in normal partnership business operations. Each has responsibility for their partners’ business related actions. Personal actions are excluded.

M2

An M1 option plus overnight agreements and deposits, savings accounts, and mutual funds.

MACRO HEDGE

An offset designed to use futures contracts to eliminate, reduce, or otherwise mitigate an entire entity’s portfolio-based economic risk. Also refer to micro hedge.

MAIL ORDER

Sales method using some version of mailing to obtain the order. Generates inquiries and orders from advertisements in suitable media, including the Internet. Contrast to phone order. Buyers and sellers have no

MAJOR CURRENCIES

The value of a local currency is measured and most of the world’s foreign transactions are denominated with one of the following major currencies: British Pound (GBP), Euro (EUR), Japanese Yen (JPY),

MANAGEMENT BY RESULTS

Objectives planned determine if results are worthwhile and contributing to an organization’s mission and goals in this process management style.

MANIFEST ERROR

Complete disregard of case facts and the applicable rule or law as an indisputable error of judgment.

MANUFACTURER’S IDENTIFICATION NUMBER (MID)

Each manufacturer that imports goods into the United States receives this unique identifying reference number. This number is used by U.S. Customs in its electronic monitoring systems. This number is not like

MARGINAL ANALYSIS

The process of identifying the benefits and costs of different alternatives. This is done by examining incremental effects on total revenue and total cost. These effects are caused by very small, single

MARGINAL PRODUCT

With all other factors remaining constant, this is output taken by adding one more production factor unit, like a labor hour or a machine hour. Marginal product measures physical units produced. Contrast

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