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Glossary

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There are 5 names in this directory beginning with the letter M.
Market Cap
Market capitalization is the market value of all the outstanding shares of a publicly-listed company. It is an indicator of what the market thinks the company is worth. It is calculated by multiplying the total outstanding shares by the current share price of a company. Watch Video

 

Mean-Variance Optimization
Mean-Variance Optimization is a portfolio optimization tool that arises from the Modern Portfolio theory that theorizes an efficient frontier of portfolios. The Mean-Variance Optimization is a quantitative tool created to find the best optimal risk-adjusted portfolio on the efficient frontier for an investor given their risk level.

 

Modern Portfolio Theory
The modern portfolio theory (MPT), also known as the mean-variance analysis, is a theory showing how to create optimal portfolios that maximize expected return given a specific risk level. This theory also theorizes that it is possible to create an efficient frontier of optimal portfolios. Watch Video

 

Money Market Funds
Money -market funds are a type of fixed-income funds that invest primarily in short-term debt securities with minimal credit risk. The securities in a money market fund are short in maturity and high in credit quality which leads to money market funds having lower volatility and higher liquidity as compared to other types of funds. Watch Video

 

Mutual Fund
A mutual fund is a type of investment vehicle that pools money from many investors into a portfolio of securities such as stocks and bonds. The portfolio is structured to meet the specific investment objectives of the mutual fund. Because mutual funds pool together money from many different investors into an investment portfolio, each individual investor takes fractional ownership of the securities in the fund proportional to how much they invest in the fund, thereby spreading both the risk and profit of the portfolio. Watch Video