What Is Maturity Guarantee? Maturity guarantee is the dollar amount of a life insurance policy or segregated fund contract that is guaranteed within a specified period. However, there are typically additional fees for the protection guarantee and rules for how long the policy or investment product needs to be held to qualify. Key Takeaways Maturity
What Is a Maturity Mismatch? Maturity mismatch is a term used to describe situations when there’s a disconnect between a company’s short-term assets and its short-term liabilities—specifically more of the latter than the former. Maturity mismatches can also occur when a hedging instrument and the underlying asset’s maturities are misaligned. A maturity mismatch may also
Maurice Allais was a prominent French economist. Known as a pioneer in his research on market equilibrium and efficiency, Allais was awarded the 1988 Nobel Prize in economics. His study of human risk behavior led to his widely regarded “Allais paradox.” Maurice Allais died on Oct. 9, 2010. Key Takeaways Maurice Allais was a French
What Is Maximizer Maximizer is a brand of customer relationship management (CRM) software popularly used by brokers and investment advisors for tracking clients and leads. The software provides contact management solutions for entrepreneurs, small and medium businesses, and large corporations. The Canadian company was founded in 1987 and is headquartered in Vancouver, British Columbia. BREAKING DOWN Maximizer Brokers and investment dealers often use
What Is a Maximum Loan-To-Value Ratio? A maximum loan-to-value ratio is the largest allowable ratio of a loan’s size to the dollar value of the property. The higher the loan-to-value ratio, the bigger the portion of the purchase price of a home is financed. Since the home is collateral for the loan, the loan-to-value ratio
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
