What Is Mello-Roos? A Mello-Roos is an ad hoc California tax district created to finance an infrastructure project. A district may be created only with the approval of two-thirds of voters and permits a special tax to be assessed on its residents. The state law allowing such districts was implemented in 1982 as a way
What Is a Melt-Up? A melt-up is a sustained and often unexpected improvement in the investment performance of an asset or asset class, driven partly by a stampede of investors who don’t want to miss out on its rise, rather than by fundamental improvements in the economy. Gains that a melt-up creates are considered to
What Is a Member Firm? The term member firm refers to a brokerage or financial firm with membership to at least one organized stock exchange, commodities exchange, or another type of securities exchange. Member firms are given the rights and privileges to trade on the exchanges to which they belong. Membership is normally granted to
What Is Member Month? Member month refers to the number of individuals participating in an insurance plan each month. Member month is calculated by taking the number of individuals enrolled in a plan and multiplying that sum by the number of months in the policy. Member months help insurance companies calculate the average monthly premiums
What Is a Member Payment Dependent Note? Member payment dependent note refers to a note issued by LendingClub, a peer-to-peer lending company located in San Francisco, California. The income from these notes is used to make loans to club members. Key Takeaways Member payment dependent notes are speculative notes with high interest rates issued by
What Is Mental Accounting? Mental accounting refers to the different values a person places on the same amount of money, based on subjective criteria, often with detrimental results. Mental accounting is a concept in the field of behavioral economics. Developed by economist Richard H. Thaler, it contends that individuals classify funds differently and therefore are
What Is Mercantilism? Mercantilism was an economic system of trade that spanned the 16th century to the 18th century. Mercantilism was based on the principle that the world’s wealth was static, and consequently, governments had to regulate trade to build their wealth and national power. Many European nations attempted to accumulate the largest possible share of that wealth by
What Is Merchandising? Merchandising is the presentation and promotion of goods that are available for purchase for both wholesale and retail sales. This includes marketing strategies, display design, and competitive pricing, including discounting. Merchandising is important for retailers looking to cultivate their brand, improve the experience of customers, compete with others in the sector, and
What Is the McFadden Act? The McFadden Act of 1927 is a piece of federal legislation that gave individual states the authority to govern bank branches located within the state. This includes branches of national banks located within state lines. The McFadden Act was intended to allow national banks to compete with state banks by
What Is the Monetary Conditions Index (MCI)? The monetary conditions index (MCI) uses the short-term interest rate and the exchange rate of an economy’s national currency to gauge the relative ease or tightness of monetary conditions. The measure is typically used to help central banks craft monetary policy. The monetary conditions index (MCI) has become
