Coordinated Capital Securities, Inc. - Glossary

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Maintenance Call - A demand for the deposit of additional cash or securities due to the account being below the firm's required maintenance levels. See the explanation of margin for more complete information on using margin leverage in your investing.

Managed Futures - Represents an industry comprised of professional money mangers known as commodity trading advisors who manage client assets on a discretionary basis, using global futures markets as an investment medium.

Manager - See syndicate manager.

Managing underwriter - See syndicate manager.

Mandatory reorganization - A reorganization in which all shareholders are required to participate.

Margin Account (Type 2) - Brokerage account allowing customers to buy securities with money borrowed from the broker. Sales of margin accounts are governed by REGULATION T of the Federal Reserve Board, the National Association of Securities Dealers (NASD), and by brokerage firm house rules. A signed MARGIN AGREEMENT is a prerequisite to establishing a margin account.

Margin call - A demand for a client to deposit money or eligible securities with the broker to bring a margin account up to the initial margin or minimum maintenance requirements. A Regulation T margin call is sent when a purchase is made and a maintenance margin call is sent when the margin account's equity falls below specific levels. If the client does not respond to the call, securities in the account may be liquidated.

Market capitalization - The price of a stock multiplied by the total number of shares outstanding. Also, the market's total valuation of a public company.

Market correction - In technical analysis, a small reversal in prices following a significant trending period.

Market depth - The number of shares of a security that can be bought or sold at the bid and ask prices near the market without causing a dramatic change in price.

Market Maker - A firm that maintains a firm bid and offer price in a given security by standing ready to buy or sell at publicly-quoted prices. The Nasdaq Stock Market is a decentralized network of competitive Market Makers. Market Makers process orders for their own customers, and for other NASD broker/dealers; all NASD securities are traded through Market Maker firms. Market Makers also will buy securities from issuers for resale to customers or other broker/dealers. About 10 percent of NASD firms are Market Makers; a broker/dealer may become a Market Maker if the firm meets capitalization standards set down by NASD.

Market Maker spread - The difference between the price at which a Market Maker is willing to buy a security and the price at which the firm is willing to sell it.

Market order - An order to buy or sell a stated amount of a security at the best possible price at the time the order is received in the marketplace.

Market value - The market value of a security is the last-sale price multiplied by total shares outstanding. It is calculated throughout the trading day, and is related to the total value of the index.

Mark-To-Market - The comparison and adjustment of a position to reflect current market values. Mark to market is conducted on stocks that were sold short, uncovered calls and puts and when-issued securities. The adjustment may cause a margin call to be issued.

Material news - News released by a public company that might reasonably be expected to affect the value of a company's securities or influence investors' decisions. Material news includes information regarding corporate events of an unusual and non-recurring nature, news of tender offers, unusually good or bad earnings reports, and a stock split or stock dividend.

Maturity - A full redemption (usually of a principal, bond, CD, or note) on its due date. This will be at face value. Note: GNMA and other mortgage-backed securities usually return principal during the life of the instrument.

Mediation - An informal, voluntary process used in securities industry disputes in which a mediator helps negotiate a mutually-acceptable resolution between disputing parties. Unlike arbitration or litigation, mediation does not impose a solution. If the parties cannot negotiate an acceptable settlement, they may still arbitrate or litigate their dispute.

Member firm - A broker/dealer that is a member of the National Association of Securities Dealers, Inc.

Merger - The coming together of two corporations to form one corporation. Shareholders must exchange old shares for cash, stock, or a combination depending upon the terms for the merger agreement. Participation of the shareholders is not optional unless the terms of the merger include a provision allowing for dissent.

Minimum Maintenance Requirement - As required by the NYSE, the NASD, and brokerage firms, the amount of equity that must be maintained in brokerage clients' margin accounts. Regulation T of the Federal Reserve Board requires $2,000 in cash or eligible securities to be deposited in margin accounts before brokers can extend credit. Additionally, upon a margin transaction, an initial margin requirement must be met, presently 50% of the market value of eligible securities long or short in customers' accounts. The NYSE and NASD require a margin account's equity to equal at least 25% of the market value of securities in margin accounts. Brokerage firm requirements are usually a more conservative 30%. When the market value of margined securities falls below these minimums, margin calls are issued to clients requesting additional equity to be delivered by a specified date. If customers fail to comply, brokers may sell margined securities or close out short positions (from short sales).

Money supply - The amount of money in the economy, consisting primarily of currency in circulation plus deposits in banks: M-1–U.S. money supply consisting of currency held by the public, traveler's checks, checking account funds, NOW and super- NOW accounts, automatic transfer service accounts, and balances in credit unions. M-2–U.S. money supply consisting M-1 plus savings and small time deposits (less than $100,000) at depository institutions, overnight repurchase agreements at commercial banks, and money market mutual fund accounts. M-3–U.S. money supply consisting of M-2 plus large time deposits ($100,000 or more) at depository institutions, repurchase agreements with maturities longer than one day at commercial banks, and institutional money market accounts.

Moody's Investors Service - One of the two best known bond rating services, the other being Standard & Poor's. Moody's also rates commercial paper, preferred and common stocks, and municipal short-term issues. It publishes six manuals annually that provide information on issuers and securities. The manuals are updated weekly.

Most active - Most active Nasdaq National Market stocks.

Municipal bonds - Bonds issued by states, cities, counties, and towns to fund public capital projects like roads, schools, sanitation facilities, bridges, as well as operating budgets. These bonds are exempt from federal taxation and from state and local taxes for the investors who reside in the state where the bond is issued.

Municipal securities - Bonds issued by states, cities, counties, and towns to fund public capital projects like roads, schools, sanitation facilities, bridges, as well as operating budgets. These bonds are exempt from federal taxation and from state and local taxes for the investors who reside in the state where the bond is issued.

Municipal securities broker - A broker engaged in the business of effecting transactions in municipal securities for the account of others. Banks are not included in this definition.

Municipal securities dealer - Any person, except a bank or department or division of a bank, engaged in the business of buying and selling municipal securities for his own account. Banks are not included in this definition.

Mutual Fund - An open-end investment company that offers the investor the benefits of portfolio diversification (provides greater safety and reduced volatility), and professional management. The shares are redeemable on demand at their net asset value. The fund invests the pooled assets into various investment vehicles including stocks, bonds, options, commodities and money market securities. How the fund invests is determined by the fund's objectives. The mutual fund's prospectus details this type of information plus information on any fees, the management company and other relevant data.

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