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Maloney Act
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Also called the Maloney Amendment, provides for the regulation of over-the-counter securities markets through national associations registered with the Securities and Exchange Commission. The Act was passed in 1938 to add Section 15A to the Securities Exchange Act of 1934.
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management's discussion and analysis (MD&A)
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An interpretive section of a prospectus and annual report, also called the Financial Review.
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managing underwriter
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See syndicate manager
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margin
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An account in which a customer purchases securities on credit extended by a broker-dealer. Rules of the Federal Reserve Board and FINRA govern margin accounts. (See Regulation T
)
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markdown and markup
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A markdown is a charge subtracted from the selling price of a security that a customer is selling to a dealer-broker for the broker's-dealer own account. The broker-dealer adds a markup to the price when it sells a security to a customer from its own account. The markdown or markup are the equivalent of a commission on the sale.
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market capitalization
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The price of a stock multiplied by the total number of shares outstanding. Also, the market's total valuation of a public company.
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market depth
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See depth of market
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Market Information Data Access System (MIDAS)
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Computer system that supports FINRA market regulation and examination programs by providing historical data on Nasdaq over-the-counter quotation and trading volume.
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Market Maker
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A firm that maintains a firm bid and offer price in a given security by standing ready to buy or sell at publicly-quoted prices. The Nasdaq Stock Market is a decentralized network of competitive Market Makers. Market Makers process orders for their own customers, and for other broker-dealers; all Nasdaq securities are traded through Market Maker firms. Market Makers also will buy securities from issuers for resale to customers or other broker-dealers.
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Market Maker spread
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The difference between the price at which a Market Maker is willing to buy a security and the price at which the firm is willing to sell it. (See inside market
)
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market order
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An order to buy or sell a stated amount of a security at the best possible price at the time the order is received in the marketplace.
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market surveillance
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A highly automated, centralized process of investigating and preventing abusive, manipulative, or illegal trading practices in The Nasdaq Stock Market. The Market Surveillance Department is called Market Regulation.
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market value
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The market value of a security is the last-sale price multiplied by total shares outstanding. It is calculated throughout the trading day, and is related to the total value of the index. (See last-sale reporting
)
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material news
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News released by a public company that might reasonably be expected to affect the value of a company's securities or influence investors' decisions. Material news includes information regarding corporate events of an unusual and non-recurring nature, news of tender offers, unusually good or bad earnings reports, and a stock split or stock dividend. (See trading halt
)
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MBARSSM
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See Municipal Bond Acceptance and Reconciliation Service
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MD&A
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See management's discussion and analysis
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mediation
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An informal, voluntary process used in securities industry disputes in which a mediator helps negotiate a mutually-acceptable resolution between disputing parties. Unlike arbitration or litigation, mediation does not impose a solution. If the parties cannot negotiate an acceptable settlement, they may still arbitrate or litigate their dispute. (See arbitration
)
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MIDAS
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See Market Information Data Access System
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misrepresentation
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A false representation of a matter of fact that should have been disclosed, which deceives another so that he/she acts upon it to his/her injury.
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most active
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Most active Nasdaq National Market stocks.
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motion
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An application made to the arbitrator(s) for the purpose of obtaining a rule or order directing some act to be done in favor of the applicant.
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MSRB
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Municipal Securities Rulemaking Board
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multiple
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See price/earnings ratio
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Municipal Bond Acceptance and Reconciliation Service (MBARSSM)
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Service designed to eliminate submission of trade-data paperwork to the clearing corporation and to assist in the comparison and clearing of municipal bond, over-the-counter corporate bond, and unit investment trust trades.
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Municipal bonds
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Bonds issued by states, cities, counties, and towns to fund public capital projects like roads, schools, sanitation facilities, bridges, as well as operating budgets. These bonds are exempt from federal taxation and from state and local taxes for the investors who reside in the state where the bond is issued.
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Municipal securities
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See Municipal bonds
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Municipal securities broker
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A broker engaged in the business of effecting transactions in municipal securities for the account of others. Banks are not included in this definition.
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Municipal securities dealer
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Any person, except a bank or department or division of a bank, engaged in the business of buying and selling municipal securities for his own account. Banks are not included in this definition.
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mutual fund
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A pool of money invested by an investment company in a number of securities like stocks, bonds, or government securities. Each mutual fund is different in its make-up and philosophy. Because most mutual funds invest in a large number of securities, they offer investors the benefit of diversification, which can help reduce market risk.
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