Maintenance Fee
Fees that direct-sold college savings plans may charge for continued participation in the plan.
Management Fee
A fee paid out of fund assets to the fund's investment adviser (or its affiliates) for managing the fund’s investment portfolio. Management fees may also include administrative fees payable to the…
Manipulación del mercado
La manipulación del mercado ocurre cuando alguien afecta artificialmente la oferta o la demanda de un valor (por ejemplo, haciendo que los precios de las acciones suban o bajen drásticamente).
La…
Margin Account
A “margin account” is a type of brokerage account in which the broker-dealer lends the investor cash, using the account as collateral, to purchase securities. Margin increases investors’…
Margin Call
If you buy on margin and the value of your securities declines, your brokerage firm can require you to deposit cash or securities to your account immediately, or sell any of the securities in your…
Market Capitalization
Market capitalization is the value of a corporation determined by multiplying the current public market price of one share of the corporation by the number of total outstanding shares.
Market Index
A measurement of the performance of a specific "basket" of stocks considered to represent a particular market or sector of the U. S. economy. For example, the Dow Jones Industrial Average (DJIA) is…
Market Indices
A market index tracks the performance of a specific "basket" of stocks that represent a particular market or economic sector. U.S. examples include the Dow Jones Industrial Average, an index of 30…
Market Makers
A "market maker" is a firm that stands ready to buy or sell a stock at publicly quoted prices.
Learn More.
Market Manipulation
Market manipulation is when someone artificially affects the supply or demand for a security (for example, causing stock prices to rise or to fall dramatically).
Market manipulation may involve…
Market Order
A market order is an order to buy or sell a stock at the current market price. Unless you specify otherwise, your broker will enter your order as a market order. The advantage of a market order is…
Market Volatility Procedures and Circuit Breakers
For information on circuit breakers and other market volatility procedures please read our investor bulletin “New Measures to…
Markups and Markdowns
When a broker-dealer buys from or sells to you directly securities it holds in its own inventory, the broker-dealer acts as a principal in the transaction. When acting as a principal, the…
Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities
If you hold securities in physical certificate form and want to transfer or sell them, you will need to sign the certificates and securities powers--a legal document, separate from a securities…
Mediation and Arbitration
Arbitration, a form of alternative dispute resolution, is a technique for the resolution of disputes outside the court system. The parties to a dispute refer it to arbitration by one or more…
Mergers
Mergers are transactions involving the combination of generally two or more companies into a single entity. The need for shareholder approval of a merger is governed by state law. Typically, a…
Microcap stock
The term “microcap stock” (sometimes referred to as “penny stock”) applies to companies with low or micro market…
Mini-Tender Offers
"Mini-tender" offers are tender offers that, when consummated, will result in the person who makes the tender offer owning less than five percent of a company’s stock. The people behind these offers—…
Money Market Fund
Money market funds are a type of mutual fund that invest in…
Money Markets
A market that provides trading in short-term debt.
Mortgage-Backed Securities and Collateralized Mortgage Obligations
Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property. Mortgage loans are purchased from…
Mutual Fund and ETF Fees and Expenses
As with any business, running a mutual fund or ETF involves costs. For example, there are…
Mutual Fund Classes
Some mutual funds offer investors different types of shares, known as "classes." Different types of shares issued by a single fund are sometimes referred to as Class A shares, Class B shares,…
Mutual Fund Prospectus
Mutual funds must provide a copy of the fund’s prospectus to shareholders after they purchase shares, but investors can – and should – request and read the fund’s prospectus before making an…
Mutual Fund Redemptions
Mutual fund shares are redeemable, meaning investors can sell shares back to the fund on any business day. A mutual fund generally must pay redemption proceeds to a shareholder within seven days of…
Mutual Funds
A mutual fund is an SEC-registered open-end investment company that pools money from many investors. It invests the money in stocks, bonds, short-term money-market instruments, other securities or…
Mutual Funds, Past Performance
This year's top-performing mutual funds aren't necessarily going to be next year's best performers. It’s not uncommon for a fund to have better-than-average performance one year and mediocre or below…