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Market Timing |
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1) An accepted practice of
allocating assets among investments by switching
into investments that appear to be beginning an
up trend, and switching out of investm ents that
appear to be starting a downtrend.
2) An increasingly unacceptable / illegal practice
of undertaking frequent or large transactions in
mutual funds. Especially where there is a time difference
between the close of the relevant markets that the
fund invests in and the valuation of the fund. ie
a Far East fund that is valued the next day in the
UK. |
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Market Value |
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The value at which an asset
trades, or would trade in the market. |
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Mark to Market |
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When
the value of securities in a portfolio are updated
to reflect the changes that |
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Maximum Draw Down |
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The largest loss suffered by a
security or fund, peak to trough, over a given period,
usually one month. |
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Merger Arbitrage |
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Sometimes called Risk Arbitrage,
involves investment in event-driven situations such as
leveraged buy outs, mergers and hostile takeovers. Normally
the stock of an acquisition target appreciates while the
acquiring company’s stock decreases in value. |
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Mezzanine Level |
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Stage of a company’s development
just prior to its going public. Venture capitalists entering
at that point have a lower risk of |
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loss than at previous stages and
can look forward to early capital appreciation as a
result of the market value gained by an initial public
offering. |
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Micro-Economics |
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The behaviour and purchasing decisions
of individuals and firms. |
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Money Market
Funds |
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Mutual funds that invest in short
term highly liquid money market instruments. These funds
are used when preservation of capital is paramount. They
may be used to “park” money between investments,
especially during periods of market uncertainty. |
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Mortgage Protection Insurance |
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A type of Term Life policy which
pays off the balance of a mortgage upon the death of the
insured. Typically, the death benefit decreases according
to a schedule that fits the declining payoff requirements
of the mortgage
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