Information is the key to trade, and the first step for you is to understand the jargon in
the stock trading business. Here is a list of banking and trading terminologies to equip
you as you muscle your way to online trading. You may go through the entire list, or click
on a letter below to display the words with prefix of your chosen letter.
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| Majority Stockholders |
The stockholders representing the controlling interest in a corporation. Ownership of over 50 percent of the stock is necessary for this purpose, but in large publicly owned corporations, effective control is usually achieved by minority holdings combining their votes with effective use of proxies from remaining scattered small holders
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| Making A Market |
Standing ready to quote firm quotations (bid and asked) to buy and sell particular issues, particularly on the over-the-counter market |
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| Making A Price |
When a seller quotes a price that he or she is willing to accept at the request of the buyer, or vice versa |
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| Managed Account |
An investment account where the investor turns over direction of the account to a professional manager |
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| Management Fee |
The amount paid by a mutual fund to the investment adviser for its services |
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| Managing Underwriter |
In a public offering of securities, the firm that manages both the offering and the syndicate involved in its distribution |
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| Maps |
Market auction preferred stock |
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| Margin |
A payment on account of a purchase, conferring ownership with its attendant risks and privileges upon the buyer, but subjecting the person to a lien on the purchase to the extent that credit is advanced to finance the full purchase price secured by the purchase |
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| Margin Account |
Customers buying stocks on margin or engaging in short sales must have a general account, often referred to an a margin account |
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| Market |
Any interaction of buying and selling interest for goods or services; a locality in which the determination of quotations or prices of actual transactions in goods and services is established |
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| Marketable Security |
Short-term investment, one that can be sold any time the investor wishes; a short-term investment |
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| Marketability |
The relative ease and promptness with which a security or commodity may be sold when desired, at a representative current price, without material concession in price merely because of the necessity of sale, connoting the existence of current buying interest as well as selling interest and is usually indicated by the volume of current transactions and the spread between the bid and asked price for a security or commodity - the closer the spread, the closer are the buying and selling interests to agreement on price resulting in actual transactions |
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| Market Averages |
One of the chief barometers upon which investors and speculators rely in making market commitments, for an indication of price trends as well as levels, such as the Dow Hones Averages, the PSE Averages, and many others |
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| Market Correction |
A relatively small reversal in prices following a significant trending period |
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| Market Influences |
Almost everything that happens in business that has a direct or indirect influence on the markets, including fundamental and technical factors |
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| Market Leaders |
Those stocks that act as bellwethers of their respective industry groups in market action |
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| Market Letters |
Periodicals prepared by brokerage houses and others that provide information to its members and clients summarizing the more prominent political, business, financial, and technical market factors bearing upon the price trend and other market activities and opportunities |
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| Market Maker |
A brokerage firm in the over-the-counter market that purchases and sells shares in one or more OTC stocks for its own account, the market maker acting as a principal on one side of a transaction; a professional securities dealer who stands ready to buy when there is an excess of sell orders to sell when there is an excess of buy orders |
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| Market Order |
An order given to a broker to be executed at the best price obtainable for the particular security or commodity immediately after its receipt |
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| Market Price |
The price that is currently being realized for a particular security or commodity |
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| Market Risk |
A risk related to adverse changes in the market prices of financial instruments |
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| Market Sentiment |
The general tone or feeling of a market toward the future course of prices and trends, e.g., bullish, bearish, etc. |
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| Market Structure |
The composition of firms in a market, including perfect competition, monopolistic competition, oligopoly, and monopoly |
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| Market Timing |
The shifting of assets into or out of the market to maximize investment returns based on anticipated market changes |
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| Matched Orders |
A form of manipulation by which an operator buys a particular stock form one broker and wells it through another, thus artificially giving the appearance of activity |
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| Melon |
In the stock market, a stock dividend or large extra cash dividend |
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| Monopolistic Competition |
AA market structure in which there are many sellers of a differentiated product (such as breakfast cereal) and only minor barriers to entry |
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| Monopoly |
A market structure in which there is only one supplier of a product and significant barriers to entry in which the monopolist will set a price to maximize profits |
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| Monopsony |
A market situation in which there is only one buyer of a product |
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Monthly Investment Plan |
A pay-as-you-go plan for the periodic investment of any amount in designated listed stocks by individual investors
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