Stock market terms starting with M

Macaulay Duration Bonds & Fixed Income years The weighted average time until a bond's cash flows are received, with each time weighted by the present value of its cash flow. Macaulay Duration = Sum of (Time x Present Value of Cash Flow) / Bond Price

MACD Indicators & Oscillators ₹ The moving average convergence divergence indicator: the difference between a fast and a slow exponential moving average of price. MACD Line = 12-period EMA - 26-period EMA; Signal Line = 9-period EMA of the MACD Line

MACD Histogram Indicators & Oscillators ₹ The difference between the MACD line and its signal line, plotted as bars around a zero axis. Histogram = MACD Line - Signal Line

Margin Risk & Portfolio Management ₹ Borrowed funds or collateral used to take a position larger than the cash available. Margin Requirement = Position Value x Required Percentage; Leverage = Position Value / Margin Posted

Margin Call Risk & Portfolio Management ₹ A demand from a broker for additional funds when losses reduce collateral below the required level. Shortfall = Required Margin - Available Collateral, payable immediately

Margin of Safety Fundamental Analysis & Valuation % The discount between the price paid for a security and the analyst's estimate of its intrinsic value. Margin of Safety = (Estimated Intrinsic Value - Market Price) / Estimated Intrinsic Value x 100

Mark to Market Derivatives, Futures & Options ₹ The daily revaluation of open derivative positions at the closing price, with gains and losses settled in cash. Daily Mark-to-Market = (Today's Settlement Price - Yesterday's Settlement Price) x Lot Size x Number of Lots

Market Breadth Indicators & Oscillators % The extent to which a market's move is shared across its constituents rather than concentrated in a few. Measures include advance-decline ratio, percentage of securities above their 200-day moving average, and new highs minus new lows

Market Cap to GDP Ratio Economy, Macro & Market Cycles % The total market capitalisation of listed companies divided by the country's gross domestic product. Market Cap to GDP = Total Market Capitalisation of Listed Companies / Nominal GDP x 100

Market Capitalisation Market Basics & Instruments ₹ crore The total market value of a company's outstanding shares, obtained by multiplying the share price by the number of shares. Market Capitalisation = Market Price per Share x Total Shares Outstanding

Market Crash Economy, Macro & Market Cycles % A sudden, severe fall in prices across a market, typically over days rather than months. Test: a broad index falls sharply within a very short period, usually accompanied by a spike in volatility and volume

Market Cycle Economy, Macro & Market Cycles qualitative The recurring pattern of rising and falling market prices, related to but distinct from the underlying economic cycle. Phases commonly described as accumulation, mark-up, distribution and mark-down

Market Depth Orders, Execution & Market Structure shares The quantity of shares available at each price level on both sides of the order book. Depth at a level = total quantity of resting orders at that price on the relevant side

Market Efficiency Economy, Macro & Market Cycles qualitative The proposition that prices already reflect available information, so consistently earning excess returns from that information is not possible. Forms: weak, where prices reflect past prices; semi-strong, adding public information; strong, adding private information

Market Maker Orders, Execution & Market Structure ₹ A participant that continuously quotes both a bid and an ask, standing ready to buy or sell and earning the spread. Gross Earnings = Bid-Ask Spread x Volume Transacted, less losses from adverse price moves on inventory

Market Manipulation Indian Market, Regulation & Taxation qualitative Conduct intended to create a false or misleading appearance of trading or an artificial price in a security. Test: the conduct creates a false appearance of trading activity or an artificial price, whether by matched trades, circular trading, wash trades or misleading statements

Market Order Orders, Execution & Market Structure qualitative An instruction to buy or sell immediately at the best price currently available in the order book. Test: the order specifies quantity but no price, and executes against resting orders until filled

Market Price Market Basics & Instruments ₹ The price at which a security most recently changed hands on the exchange. Market Price = price of the most recent executed trade

Market Sentiment Market Psychology & Behavioural Finance qualitative The prevailing attitude of investors toward a market or security, independent of its fundamentals. Test: measured by proxies such as put-call ratios, volatility indices, survey data, fund flows and new issue activity

Marubozu Technical Analysis & Chart Patterns qualitative A candlestick with no wicks, where the open and close are the period's extremes. Test: Open equals either the High or the Low, and Close equals the other, so both wicks are zero or negligible

Material Disclosure Corporate Actions, Dividends & Governance qualitative A listed company's obligation to inform the exchanges of events that could affect its securities' price. Test: the event meets a prescribed materiality threshold or the company's own policy, and is disclosed within the specified timeline

Maturity Bonds & Fixed Income years The date on which a bond's principal is repaid and the obligation ends. Residual Maturity = Maturity Date - Today's Date, expressed in years

Max Pain Derivatives, Futures & Options index points The strike at which the total value of in-the-money options outstanding would be smallest at expiry. For each strike, compute the total payoff owed on all open calls and puts if expiry settled there; the minimum is the max pain point

Maximum Drawdown Risk & Portfolio Management % The largest peak-to-trough decline a portfolio or strategy has experienced over a measured period. Maximum Drawdown = the largest value of (Peak - Trough) / Peak observed across the period

Terms starting with M