What Is a Matched Book? A matched book is an approach that banks and other institutions may take to ensure that the maturities of its assets and liabilities are equally distributed. A matched book is also known as “asset/liability management” or “cash matching.” There is a functional benefit to adopting the matched book method; it
What Is a Matching Contribution? A matching contribution is a type of contribution that an employer chooses to make to their employees’ employer-sponsored retirement plan. Put simply, a matching contribution is an amount of money that an employer chooses to make to participating employees’ retirement plans offered by the company. This amount is typically a
What are Matching Pennies? Matching Pennies is a basic game theory example that demonstrates how rational decision-makers seek to maximize their payoffs. Matching Pennies involves two players simultaneously placing a penny on the table, with the payoff depending on whether the pennies match. If both pennies are heads or tails, the first player wins and
What Are Match-Rate Funds? Match rate funds are loan funds which have their interest rates matched (or extremely close) to the interest rate on the source of the funds loaned out. This term is especially used in the European banking system to describe the relationship between the deposits a bank is currently holding and its
What Is Material Nonpublic Information? Material nonpublic information is data relating to a company that has not been made public but could have an impact on its share price. It is against the law for holders of nonpublic material information to use the information to their advantage in trading stocks. It is also illegal to
What Is Market Segmentation? Market segmentation is a marketing term that refers to aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Key
What is Market Sentiment? Market sentiment refers to the overall attitude of investors toward a particular security or financial market. It is the feeling or tone of a market, or its crowd psychology, as revealed through the activity and price movement of the securities traded in that market. In broad terms, rising prices indicate bullish market
What Is Market Share? Market share is the percent of total sales in an industry generated by a particular company. Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea
What is a Market Standoff Agreement? A market standoff agreement prevents insiders of a company from selling their shares in the market for a specified number of days after an initial public offering (IPO). The market standoff term is generally 180 days but can vary from as little as 90 days to as much as one year.
What Is a Market Strategist? A market strategist is a financial professional who uses one of three broad categories to choose which asset classes—for example, stocks, mutual funds, bonds, or ETFs—to invest in. Those three categories are sentimental analysis, technical analysis, and company fundamentals or fundamentals analysis. Key Takeaways The three major types of analytical
