Glossary

Management	The people who administer a company, create policies, and provide the support necessary to implement the owners' business objectives.
Manipulation	The illegal act of buying or selling securities for the purpose of creating a misleading impression of market activity to induce the purchase or sales of securities by others.
Margin	Allows investors to buy securities by borrowing money from a broker. The margin is the difference between the market value of a stock and the loan a broker makes.
Margin Account	An account where the brokerage firm lends a customer money for purchases of securities or securities for short sale.
Margin Call	A margin call is literally a call from your broker asking you to put money into your margin account. The margin call usually occurs when the value of your investment falls below 75% of its original value and is designed to bring your net asset value back to its original amount.
Margin Security	Security that may be bought or sold in a margin account.
Margin Trading	Buying on Margin means buying with borrowed money. Usually your broker can lend you money to buy on margin if you open a margin account. Under most regulations you are permitted to borrow up to 50% of the purchase price of a stock and do not have to repay what borrowed until you sell the stock. Margin buying gives you leverage. In financial terms, leverage means using a little of your own money to control the rights to something of greater value. In this case, your broker is only concerned with receiving the amount loaned plus interest. Any profit from your purchase is yours to keep. The advantage of buying on margin is straightforward: your gains on a percentage basis are magnified. The disadvantage however is that your losses are magnified as well. Margin rules dictate that when the stock price falls, only the amount you have invested in loses value. The broker's loan amount does not change. Some stocks might even lose so much value that selling them will not raise enough money to repay your loan. To protect the brokers from this problem, brokers put out a Margin call.
Markdown	The amount subtracted from the selling price of securities when they are sold to a dealer in the OTC market. Also, the discounted price of municipal bonds after the market has shown little interest in the issue at the original price.
Marketable Securities	Securities that are easily convertible to cash because there is high demand allowing them to be sold quickly.
Marketability	A measure of ease or difficulty with which a security can be resold in the secondary market. Good marketability indicates that there is an active market in which the security can be resold.
Market Capitalization	The value of shares on an exchange. This value is calculated by multiplying the current price of shares by the number of current listed shares,also referred to as Market Cap.
Market Index	Market measure that consists of weighted values of the components that make up certain list of companies. A stock market tracks the performance of certain stocks by weighting them according to their prices and the number of outstanding shares by a particular formula.
Market Opening	The start of formal trading on an exchange.
Market Order	An order to buy or sell a stock at the market's current best displayed price, given one's position.
Market Price	The order price which is the best-bid price in case of a buying order, or the best-ask price in case of a selling order.
Market Value-Weighted Index	An index of a group of securities computed by calculating a weighted average of the returns on each security in the index, where the weights are proportional to outstanding market value.
Mark-to-Market	An arrangement whereby the profits or losses on a futures contract are settled each day.
Matching	Comparison of the terms of a trade to ensure the details from both parties match.
Maturity Date	The date a debt security expires and the date that the principal amount of the debt must be paid by the borrower to the investor.
Merger	A voluntary combination of two or more companies whereby both stocks are merged into one.
Money Market	Money markets are for borrowing and lending money for three years or less. The securities in a money market can be government bonds, Treasury bills and commercial paper from banks and companies.
Money Market Funds	Funds where borrowing and lending is for a period of less than one year, including certificates of deposit, repurchase agreements, and treasury bills.
Money Supply	The amount of money in a given economy, consisting primarily of currency in circulation and deposits by banks. There exist a number of different measures of the money supply, among them M1 and M2.
Money Supply (M1)	Equals the currency with the public plus demand deposits in Jordanian dinar with the banking system of the private sector (resident), public entities, and non-banking financial institutions, plus demand deposits of other banking institutions in Jordanian dinar with the Central Bank of Jordan only.
Money Supply (M2)	Equals the money supply (M1) plus quasi-money. On the asset side, it equals net domestic assets plus net foreign assets of the banking system.
Mortgage-Backed Bonds	Bonds that are secured by pools of mortgages.
Multilateral Netting	A process conducted by the Security Depository Center whereby trades in the same security are netted regardless of who the counterparty is and a net cash and security position is settled for each participant.
Municipal Bonds	Bonds issued by local governments for the purpose of raising capital for a city or district.
Mutual Fund	An established investment fund whereby an investment company pools funds from investors in order to purchase a wide variety of financial instruments that will meet the fund's investment goals.