October 1, 2018

Glossary

Glossary

All | # A B C D E F G H I J K L M N O P Q R S T U V W Y Z
There are 22 names in this directory beginning with the letter M.
Management Accounting
Accounting concerned with providing information to managers who are inside an organization and also direct and control operations. Management Accounting includes cost accumulation for product costing, budgeting and financial statement analysis.

Management Buyout
When managers or executives of a company buy a controlling interest in their company from existing shareholders. If they pay a premium over the existing fair market value of the outstanding shares, the company then becomes a private corporation without a majority of shares trading on the market.

Management Fee
A charge against an investor's assets for a fund manager's services.

Manager
An LLC may be operated by a group of managers who act much like a board of directors. If an LLC is to be controlled by mangers this fact must be stated in the articles of organization.

Mandatory Employee Contribution
Some employee benefit plans require employees to make contributions in order to accrue benefits.

Market Risk
The portion of a security's risk common to all securities in the same asset class. Market risk cannot be eliminated through diversification.

Market Timing
A strategy in which an investor attempts to predict market trends, such as the direction of stock prices or interest rates, and buys and sells securities quickly to turn profits on short-term price fluctuations.

Market Value
The highest price that an owner could realize in an open market transaction. See Fair Market Value.

Materiality
A term used to describe the significance of financial statement information to decision makers. An item of information is material if it is probable that its omission or misstatement would influence or change a decision.

Maturity
The point in time when a debt, such as a bond, becomes due for payment.

Medicaid
A federal program that covers medical expenses for individuals who are financially unable to afford health care.

Medicare
A federal program that covers health care for individuals age 65 and over and individuals with certain disabilities.

Medicare Part D
The prescription drug benefit program for Medicare recipients.

Member
A member is a person who is an owner of a Limited Liability Company. The members make the business decisions of an LLC unless the articles of organization provide that the LLC will controlled by a manager, or managers.

Merger
A merger occurs when one corporation is taken over by another.

Minimum Participation Requirements
Generally, a participant must be 21 years old and have been a full-time employee for one year to receive benefits from an employer-sponsored retirement plan.

Minority Interest
The equity of all shareholders who do not hold a controlling interest in a company.

Minutes
A written record which details the events of the corporation. These records should be kept in the corporation's record book.

Money Market
Financial markets in which short-term debt instruments such as Treasury bills, commercial paper and CDs are traded.

Monthly Housing Expenses
The sum of the principal, interest and taxes a borrower pays toward housing on a monthly basis, used to determine affordability.

Mortality Table
A statistical table showing the death rates of people at various ages.

Municipal Bond
A tax-exempt bond issued by a state government or agency, or by a town, county or other political subdivision or district.