Financy Glossary
The online dictionary of financial terms




In the context of United Kingdom money supply, M0 denotes the amount of notes and coins in circulation plus bank and building society deposits.

Synonym: Narrow money (UK)



In the context of United States money supply, M1 denotes the amount of notes and coins in circulation plus demand deposits (checking accounts from which money can be withdrawn on demand).

Synonym: Narrow money (USA)


Macaroni Defense

The Macaroni Defense is a defensive strategy that can be employed in the fight against a hostile takeover. This defense relies on the issuing of a large number of bonds that the company is obliged to redeem at a higher value if the company is taken over.

The name macaroni defense is a reference to how dried macaronis expand when you put them in water and cook them.


Macaulay Duration

The weighted-average term to maturity of the cash flows from a bond, where the weights are the present value of the cash flow divided by the price.


Management Buy Out

When a company’s managers purchase enough shares in the company to run it independently. Management Buy Outs are often backed by a venture capitalist.


Mandatory Quote Period

At the London Stock Exchange, the mandatory quote period is the period of time during which market makers in a security are obliged to display their prices.


Mid Price

The average of the bid price and the offer price for a security.

Example: Today’s closing prices for shares in Company XYZ is bid: 114 p and offer: 116 p. The mid price is thus 115 p.


Mortgage Backed Security

A security backed by one or more mortgage loans.

A common example of Mortgage Backed Security is the bond backed by bundled mortgage loans.


Municipal Bond

In the United States, a Municipal Bond is a bond issued by a state, city or local government.

In some cases, municipal bond income gets preferential tax treatment.


Mutual Savings Bank

In the United States, a Mutual Savings Bank is a bank owned by its depositors and operated for the benefit of its depositors.