make-whole call provision
A make-whole call provision lets an issuer redeem (call) a bond before maturity but requires the issuer to pay the bondholders a lump sum…
Make-to-Order (MTO)
Key takeaways – Make-to-order (MTO) is a pull-type production strategy in which final products are manufactured only after a confirmed customer order. (Source: Investopedia)…
Main Street Explained
Key takeaways – “Main Street” is a colloquial term for America’s locally owned small businesses and the economic life of towns and neighborhoods (the…
Magnetic Ink Character Recognition (MICR) Line
Key takeaways – The MICR line is the string of characters printed along the bottom of a check that encodes the routing number, account…
MAGI (modified adjusted gross income)
• MAGI (modified adjusted gross income) starts with your AGI (adjusted gross income) and then “adds back” certain items the IRS treats as modifications.…
Macroeconomics
Key Takeaways – Macroeconomics studies the economy as a whole: GDP, inflation, unemployment, growth, and business cycles. – Macroeconomic theory and models guide government…
Macaulay Duration
The Macaulay duration is the weighted average time (in periods or years) it takes for a bond’s cash flows — coupon payments and principal…
M1
• M1 is the narrowest commonly used measure of a country’s money supply. It captures the most liquid forms of money used for everyday…
Ltd. (Limited)
Key takeaways – “Ltd.” (limited) signals a company is a separate legal entity whose owners’ liability is limited to the capital they invested. (Source:…
Loss Given Default (LGD)
Introduction Loss given default (LGD) measures the portion of an exposure a lender expects to lose if a borrower defaults, after taking into account…