What Is a Maximum Drawdown (MDD)? A maximum drawdown (MDD) is the maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period. It can be used both as a stand-alone measure or as an
What Is Max Pain? Max pain, or the max pain price, is the strike price with the most open options contracts (i.e., puts and calls), and it is the price at which the stock would cause financial losses for the largest number of option holders at expiration. The term max pain stems from the maximum pain
What Is a Master of Business Administration (MBA)? A master of business administration (MBA) is a graduate degree that provides theoretical and practical training for business or investment management. An MBA is designed to help graduates gain a better understanding of general business management functions. An MBA degree can have a general focus or a
What Is a Management Buy-In (MBI)? A management buy-in (MBI) is a corporate action in which an outside manager or management team purchases a controlling ownership stake in an outside company and replaces its existing management team. This type of action can occur when a company appears to be undervalued, poorly managed, or requires succession. Key
What Is a Management Buyout (MBO)? The term management buyout (MBO) refers to a financial transaction where someone from corporate management or the team purchases the business from the owner(s). Management members that execute MBOs purchase everything associated with the business. This type of buyout appeals to professional managers because of the greater potential rewards
What Was the Medicare Catastrophic Coverage Act of 1988 (MCAA)? The Medicare Catastrophic Coverage Act of 1988 (MCCA) was a government bill designed to improve acute care benefits for the elderly and disabled, which was to be phased in from 1989 to 1993. The Medicare Catastrophic Coverage Act of 1988 was meant to expand Medicare
What Is the McCallum Rule? The McCallum Rule is a monetary policy rule developed by economist Bennett T. McCallum at the end of the 20th century. The McCallum Rule uses a formula to set an operating target level for the monetary base in the next quarter based on the recent average velocity of money, current
What Is the McClellan Summation Index The McClellan Summation Index is a long-term version of the McClellan Oscillator, which is a market breadth indicator based on stock advances and declines. Sherman and Marian McClellan created and developed the McClellan Summation Index. Interpretation is similar to that of the McClellan Oscillator, except that it is more
What Is McDonough School of Business? McDonough School of Business is the business school of Georgetown University. Founded in 1957 and located in Washington, D.C., the school offers both undergraduate and graduate programs. The McDonough School of Business is known for its emphasis on international business and organizational leadership. Its Master of Business Administration (MBA)
What Is the Martingale System? The Martingale system is a system of investing in which the dollar value of investments continually increases after losses, or the position size increases with the lowering portfolio size. The Martingale system was introduced by French mathematician Paul Pierre Levy in the 18th century. The strategy is based on the
