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Leverage
The use of borrowed money to increase investing power.


Leveraged Buyout

Takeover of a company, using borrowed funds. Most often, the target company's assets serve as security for the loans taken out by the acquiring firm.


Liability
Claim on the assets of a company.


Liquidity

Ability to buy or sell an asset quickly and in large volume without substantially affecting the asset's price.

 

M



Management Buyout

Purchase of all of a company's publicly held shares by the existing management, which takes the company private.


Management Fee

Charge against investor assets for managing the portfolio of an open- or closed-end fund as well as for such services as shareholder relations or administration.


Mark to the Market

Adjust the valuation of a security or portfolio to reflect current market values.


Market Capitalization

Value of a corporation as determined by the market price of its issued and outstanding common stock. It is calculated by multiplying the number of outstanding shares by the current market price.


Marketability
A measure of the ease with which a security can be sold in the secondary market.


Maturity
The date when the principal amount of a security is payable.


Maturity Date
Date on which the principal amount of a note, bond, certificate of deposit, or other debt security becomes due and payable.


Merger
The combining of two or more entities into one, through a purchase acquisition or a pooling of interests. It differs from a consolidation in that no new entity is created from a merger.


Minority Interest

Interest of shareholders who, in the aggregate, own less than half the shares in a corporation.


Monopoly
Control of the production and distribution of a product or service by one firm or a group of firms acting in concert.


Mutual fund

Also known as an open-end investment company, to differentiate it from a closed-end investment company. Mutual funds invest pooled cash of many investors to meet the fund's stated investment objective.