What Is the Modigliani-Miller Theorem (M&M)? The Modigliani-Miller theorem (M&M) states that the market value of a company is correctly calculated as the present value of its future earnings and its underlying assets, and is independent of its capital structure. At its most basic level, the theorem argues that, with certain assumptions in place, it
What Is Modus Operandi (M.O.)? Modus operandi is a Latin term used in English-speaking circles to describe an individual’s or group’s habitual way of operating, which forms a discernible pattern. The term is primarily used when discussing criminal behavior, but it is not exclusively uttered in this context. Modus operandi can also be defined as
What Is a Mom-and-Pop Establishment? “Mom-and-pop” is a colloquial term used to describe a small, family-owned, or independent business. Mom-and-pop stores are often operations that struggle to compete with more substantial establishments, such as big-box retailers, who generally boast more buying power than smaller players. In the last few years, “shop local” and “shop small”
What Is Momentum Investing? Momentum investing is a strategy that aims to capitalize on the continuance of an existing market trend. It is a trading strategy in which investors buy securities that are already rising and look to sell them when they look to have peaked Momentum, in markets, refers to the capacity for a
What is a Momentum Fund A momentum fund is an investment fund that invests in companies based on current trends in such things as earnings or price movement. Managers of these funds invest in companies with positive momentum and may also short stocks of companies with negative momentum. BREAKING DOWN Momentum Fund Momentum funds can
What Is MonaCoin (MONA)? MonaCoin, or MONA, is a digital currency used predominantly in Japan. It was designed as a payment network for peer-to-peer transactions, bypassing exchanges or third-party involvement. The cryptocurrency was created in 2013 as a hard fork from Litecoin and generally uses the identical blockchain. Unlike Litecoin, however, it does not use
What Is Cronos (CRO)? CRO is the native token of the blockchain designed by CRO Protocol Labs, also known as Crypto.com. It is a company that provides an all-in-one decentralized finance application and exchange. You can buy and sell crypto, stake your crypto and earn with it, collect all of your crypto in one wallet
What Is the Monetary Accord of 1951? The Monetary Accord of 1951 was an agreement between the U.S. Secretary of the Treasury and the Federal Reserve Board (the Fed). It is also known as the Treasury-Federal Reserve Accord. The primary accomplishment of the accord was the reestablishment of the Federal Reserve’s independence. This pact paved the way
What Are Monetary Aggregates? Money aggregates are broad categories that measure the money supply in an economy. In the United States, labels are attributed to standardized monetary aggregates: MO Physical paper and coin currency in circulation, plus bank reserves held by the central bank also known as the monetary base M1: All of M0, plus traveler’s
What Is the Monetary Base? The monetary base (or M0) is the total amount of a currency that is either in general circulation in the hands of the public or in the form of commercial bank deposits held in the central bank’s reserves. This measure of the money supply is not often cited since it
