MANAGEMENT/CLOSELY HELD SHARES Percentage of shares held
by persons closely related to a company. Part of these
percentages often is included in Institutional Holdings
--sometimes making the combined total of these percentages
MARGIN ACCOUNT (STOCKS) A leverageable account in which
stocks can be purchased for a combination of cash and a
loan. The loan in the margin account is collateralized by
the stock and, if the value of the stock drops sufficiently,
the owner will be asked to either put in more cash, or sell
a portion of the stock. Margin rules are federally
regulated, but margin requirements and interest may vary
MARGIN REQUIREMENT (OPTIONS) The amount of cash an uncovered
(naked) option writer is required to deposit and maintain to
cover his daily position valuation and reasonably
foreseeable intra- day price changes.
MARKET CAPITALIZATION The total dollar value of all
outstanding shares. Computed as shares times current market
price. It is a measure of corporate size.
MARKET ORDER An order to buy or sell a stock at the going
MINIMUM PURCHASES For mutual funds, the amount required to
open a new account (Minimum Initial Purchase) or to deposit
into an existing account (Minimum Additional Purchase).
These minima may be lowered for buyers participating in an
automatic purchase plan.
MONEY MARKET FUND A mutual fund that invests only in short
term securities, such as bankers acceptances, commercial
paper, repurchase agreements and government bills.
MOVING AVERAGE Used in charts and technical analysis, the
average of security or commodity prices constructed in a
period as short as a few days or as long as several years
and showing trends for the latest interval. As each new
variable is included in calculating the average, the last
variable of the series is deleted.
MUTUAL FUND An open end investment company that pools
investors money to invest in a variety of stocks, bonds, or
other securities. A mutual fund issues and redeems shares to
meet demand, and the redemption value per share is the net
asset value per share, less in some cases a redemption fee
which represents a rear-end load. A closed end fund, often
incorrectly called a mutual fund, is instead an investment
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