Municipality Bond
A debt security issued by a state or local government to finance public projects, such as schools, roads, and utilities. Municipal bonds are typically exempt from federal income tax and may be exempt from state and local taxes for investors who reside in the issuing jurisdiction.
Money Market
The market for short-term debt securities, such as Treasury bills and commercial paper. The money market provides liquidity to financial institutions and corporations and serves as a venue for short-term borrowing and lending.
Monetary Policy
Government policy concerning the control of the money supply and interest rates, aimed at achieving economic objectives such as price stability and full employment. Monetary policy is typically implemented by a central bank.
Maturity Date
The date on which a debt instrument, such as a bond or loan, becomes due and payable. The maturity date is the final repayment date for the principal amount borrowed, along with any accrued interest.
Market Risk
The risk of loss due to changes in market conditions, such as interest rates or asset prices. Market risk affects all investments and cannot be eliminated entirely but can be managed through diversification and hedging.
Mark-to-Market
A valuation method that measures the fair market value of an asset or liability based on its current market price. Mark-to-market accounting is used for financial instruments such as stocks, bonds, and derivatives to reflect changes in value over time
Margin call
A demand by a broker or lender for additional funds to cover losses incurred on a margin account. Margin calls are triggered when the value of securities held as collateral for a loan falls below a certain threshold.