What Is Margin Creep? Margin creep has multiple meanings in finance. In both of the cases, margin creep refers to a slow reduction over time of a company’s overall profit margin. A product’s margin is the difference between the cost of the good or service and the retail price. The greater the difference between the cost of
What Is Margin of Safety? Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. In other words, when the market price of a security is significantly below your estimation of its intrinsic value, the difference is the margin of safety. Because
What Is Marital Property? Marital property is a U.S. state-level legal term that refers to property acquired during the course of a marriage. Property that an individual owns before a marriage is considered separate property, as are inheritances or third-party gifts given to an individual during a marriage. Marriage partners may choose to exclude certain
What Is a Marital Trust? A marital trust is a fiduciary relationship between a trustor and trustee for the benefit of a surviving spouse and the married couple’s heirs. Also called an “A” trust, a marital trust goes into effect when the first spouse dies. Assets are moved into the trust upon death and the
What Is Maritime Law? Maritime law, also known as admiralty law, is a body of laws, conventions, and treaties that govern private maritime business and other nautical matters, such as shipping or offenses occurring on open water. International rules governing the use of the oceans and seas are known as the Law of the Sea.
What Is a Market Basket? A market basket is a selected group of products or assets designed to track the general performance of a specific market segment. This is sometimes known as a basket of goods. Market basket economics focuses on the Consumer Price Index (CPI), which tracks various consumer goods and uses their price
What Is a Mandatory Convertible? A mandatory convertible is a type of convertible bond that has a required conversion or redemption feature, rather than the convertible feature being an option. For these bonds, either on or before a contractual conversion date, the holder must convert the mandatory convertible into the underlying common stock. Key Takeaways
What Is a Mandatory Redemption Schedule? A mandatory redemption schedule requires the issuer set aside funds to redeem all, or a portion, of the outstanding bonds by the scheduled dates, which always precedes the maturity date. Key Takeaways Mandatory redemption schedules mandate a bond issuer to redeem all or part of the outstanding bonds by
What Are Mandatorily Redeemable Shares? Mandatorily redeemable shares are shares owned by an individual or entity which are required to be redeemed for cash or another such property at a stated time or following a specific event. Essentially, they are shares with a built-in call option that will be exercised by the issuer at a
What Is a Manifestation Trigger? In the insurance industry, the term “manifestation trigger” refers to the moment in time in which the policyholder becomes aware of a reason for filing a claim. For example, in the case of home insurance, the manifestation trigger might be when the policyholder discovers that their property was damaged. Oftentimes
