Stock market terms starting with M

MCX Indian Market, Regulation & Taxation qualitative The Multi Commodity Exchange of India, the country's largest exchange for commodity derivatives. Test: the contract is a commodity derivative admitted to trading on the MCX, regulated by SEBI

Mean Reversion Risk & Portfolio Management qualitative The tendency of a series to return toward its long-run average after moving far away from it. Test: extreme deviations from a long-run mean are followed on average by moves back toward that mean

Mental Accounting Market Psychology & Behavioural Finance qualitative Treating money differently depending on its source or intended use, rather than as fungible. Test: identical amounts are treated differently according to which mental category they occupy

Merger Corporate Actions, Dividends & Governance qualitative The combination of two companies into a single entity, with one absorbing the other or both forming a new company. Test: the transferor company's assets, liabilities and shareholders move into the transferee company under an approved scheme

Mid-Cap Stock Market Basics & Instruments qualitative A share of a company ranked 101st to 250th by market capitalisation under India's classification. Rank all listed companies by average market capitalisation; ranks 101 to 250 are mid-cap

Minimum Public Shareholding Corporate Actions, Dividends & Governance % The regulatory requirement that at least a stated proportion of a listed company's shares be held by the public. Test: public shareholding is at least 25% of total shares, with a longer timeline permitted for certain state-owned companies

Moat Fundamental Analysis & Valuation qualitative A durable structural advantage that lets a company earn returns above its cost of capital for many years without being competed away. Test: returns on capital stay above the cost of capital across a full cycle, and the reason can be named as a specific barrier

Modern Portfolio Theory Risk & Portfolio Management qualitative The framework holding that assets should be judged by their contribution to a portfolio's risk and return, not in isolation. Portfolio Return = Sum of Weighted Returns; Portfolio Variance = Sum over all pairs of (Weight i x Weight j x Covariance of i and j)

Modified Duration Bonds & Fixed Income years The percentage change in a bond's price for a one-percentage-point change in yield. Modified Duration = Macaulay Duration / (1 + Yield to Maturity / Number of Coupons per Year)

Momentum Indicator Indicators & Oscillators ₹ An indicator measuring the speed of price change rather than its level or direction. Momentum = Current Close - Close n periods ago

Monetary Policy Economy, Macro & Market Cycles qualitative A central bank's management of interest rates and money supply to achieve inflation and growth objectives. Test: the central bank adjusts policy rates, reserve requirements or liquidity operations to influence credit conditions

Money Flow Index Indicators & Oscillators ratio (x, times) An oscillator bounded 0 to 100 that applies the RSI calculation to price multiplied by volume rather than to price alone. MFI = 100 - 100 / (1 + Money Flow Ratio), where the ratio is Positive Money Flow / Negative Money Flow over n periods and Money Flow = Typical Price x Volume

Money Supply Economy, Macro & Market Cycles ₹ crore The total stock of money in an economy, measured in graduated aggregates from narrow to broad. M3 = Currency with the Public + Demand Deposits + Time Deposits + Other Deposits with the Reserve Bank

Moneyness Derivatives, Futures & Options ratio (x, times) The relationship between an option's strike price and the current price of the underlying. Moneyness = Spot / Strike for a call, or Strike / Spot for a put; values above 1 indicate in the money

Morning Star Technical Analysis & Chart Patterns qualitative A three-candle formation of a large falling candle, a small-bodied candle, then a large rising candle closing well into the first body. Test: candle 1 falls strongly; candle 2 has a small body below it; candle 3 rises and closes above the midpoint of candle 1's body

Moving Average Indicators & Oscillators ₹ The average price over a fixed number of recent periods, recalculated as each new period is added. Moving Average = Sum of the last n Closing Prices / n

Moving Average Crossover Indicators & Oscillators qualitative The point at which a shorter moving average crosses above or below a longer one. Test: Short-Period Moving Average crosses through Long-Period Moving Average, in either direction

Muhurat Trading Indian Market, Regulation & Taxation qualitative A symbolic one-hour trading session held on Diwali to mark the start of the Hindu accounting year, Samvat. Test: a special trading session is conducted by the exchanges on Diwali at a time announced in advance

Multi-Cap Fund Funds, ETFs & Index Investing % An equity fund required to hold a minimum allocation to each of the large, mid and small-cap segments. Test: at least 25% each in large-cap, mid-cap and small-cap, totalling a minimum of 75% in equity

Multibagger Market Basics & Instruments ratio (x, times) A colloquial label for a share whose price has risen to a multiple of its purchase price, such as a five-bagger for a fivefold rise. Bagger Multiple = Current Price / Purchase Price

Mutual Fund Funds, ETFs & Index Investing ₹ A pooled investment vehicle that collects money from many investors and invests it in securities according to a stated objective. Investor's Value = Units Held x Net Asset Value per Unit

Myopic Loss Aversion Market Psychology & Behavioural Finance qualitative The tendency to evaluate a long-term portfolio too frequently, magnifying the felt pain of short-term losses. Test: the probability of observing a loss rises sharply as the evaluation interval shortens, while the underlying investment is unchanged

Terms starting with M