Management Buyout (MBO)
What is a 'Management Buyout - MBO' A transaction where a company’s management team purchases the assets and operations of the business they manage. A management buyout (MBO) is appealing to professional managers because of the greater potential rewards from being owners of the business rather than employees. MBOs are favored exit strategies for large corporations who...
Manipulation
What is 'Manipulation' Manipulation is the act of artificially inflating or deflating the price of a security. In most cases, manipulation is illegal. It is much easier to manipulate the share price of smaller companies, such as penny stocks, because they are not as closely watched by analysts as the medium- and large-sized firms. Also...
Manufactured Housing (MH)
What is 'Manufactured Housing - MH' A housing unit constructed primarily off-site prior to being moved to a piece of property where it is set. The cost of construction per square foot is usually considerably less for manufactured housing than for traditional on-site homes (stick-built homes). In the 1990s, this style of housing accounted for nearly 25%...
Macromarketing
What is Macromarketing Macromarketing is a term coined by marketing professor Philip Kotler that refers to the study of marketing decisions and activities that affect more than one nation. It encompasses international marketing, global marketing, and cross-cultural marketing, and takes into account the effect of cultural differences on marketing decisions and practices. Macromarketing research has shown that certain marketing activities,...
Macroprudential Analysis
What is 'Macroprudential Analysis' A method of economic analysis that evaluates the health, soundness and vulnerabilities of a financial system. Macroprudential analysis looks at the health of the underlying financial institutions in the system and performs stress tests and scenario analysis to help determine the system's sensitivity to economic shocks. Macroeconomic and market data are also reviewed...
Maintenance Margin
DefinitionIn finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty to cover some or all of the credit risk the holder poses for the counterparty. This risk can arise if the holder has done any of the following... Maintenance Margin What is a 'Maintenance Margin' A maintenance margin is...
Mean Reversion
What is the Mean Reversion? Mean reversion is a theory according to which the prices return back to the mean. This mean can be the usual average of the price or any other average like return of an industry or growth in the economy. Understanding the Mean Reversion The theory has given way to a number of investing strategies...
Mancession
What is 'Mancession' An economic instance in which the unemployment rate is substantially higher among men than it is among women. The term "mancession" was coined during the financial crisis of 2008-2009, during which men bore the brunt of the job losses in the United States, at rates close to 50% higher than those of women. ...
Majority Shareholder
What is a 'Majority Shareholder' A majority shareholder is a person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder of the company or, in the case of long-established businesses, the founder's descendants. By virtue of controlling more than half of the voting interests in the company, the majority shareholder...
Manufactured Payment
What is 'Manufactured Payment' A payment made to pass through dividend and interest payments from the borrower to the lender of those securities. Manufactured payments, represented as interest or dividend payments, occur frequently in securities lending. In such an arrangement, title to the securities passes to borrower, but the lender customarily maintains the right to payments which...