NAFTA

• NAFTA (North American Free Trade Agreement) created a free‑trade zone among the United States, Canada, and Mexico; it went into effect Jan. 1,…

Nacha

Key Takeaways – Nacha (formerly the National Automated Clearinghouse Association) is the private-sector steward and rule-maker for the U.S. Automated Clearing House (ACH) Network,…

Market Value Added

Key takeaways – Market Value Added (MVA) measures the difference between the market value of a firm (debt + equity) and the total capital…

Mutually Exclusive

• Mutually exclusive means two or more events or options cannot occur or be chosen at the same time. – In probability: if A…

Mutual Company

A mutual company is a privately held business owned by its customers or policyholders rather than by outside shareholders. In a mutual, the people…

Mutual Insurance Company

A mutual insurance company is an insurer owned by its policyholders. Policyholders—often called members—have the rights that owners normally have: voting for board members…

Musharakah

Musharakah is an Islamic-finance partnership in which two or more parties contribute capital to a business or asset and share its profits and losses.…

Murabaha

Murabaha is an Islamic financing structure often called “cost‑plus” financing. Instead of lending money and charging interest (riba), an Islamic bank buys an asset…

Municipal Bond

A municipal bond (muni) is a debt security issued by a state, city, county, special district or other local government entity to finance public…

Multiples Approach

Key takeaways – The multiples approach values a company by comparing it to similar firms using standardized ratios (multiples). – Multiples fall into two…