Marginal Product of Capital

What is Marginal Product of Capital? Definition: The change in output that takes place when one additional unit of capital is deployed is referred to as the marginal product of capital. This change is measured by keeping all the other factors of production constant. What does Marginal Product of Capital mean?...

Market Demand

What is Market Demand? Definition: Market demand is the total demand for a good or a service at a certain price. If the demand by each individual is aggregated, the result will be the market demand. What does Market Demand mean? It’s important to remember that market demand signifies the quantity...

Market Economy

What is a Market Economy? Definition: In a market economy, the law of supply and demand is allowed to operate. Government interference in economic activities is minimal. This system ensures that productive resources are used in the most optimal manner. What does Market Economy mean? A market economy is a type...

Market Value of Debt

What is Market Value of Debt? Definition: The market value of debt is the amount that an investor would be willing to pay for a company’s debt. This sum could be different from the value reflected in the books. What does Market Value of Debt mean? A part of a company’s...

Marketable Securities

What are Marketable Securities? Definition: A marketable security is a financial instrument that can easily be converted into cash. Companies hold these securities as they provide a profit opportunity and can be exchanged for cash if the need arises. What does Marketable Securities mean? Companies need to maintain a cash buffer...

Master Budget

What is a Master Budget? Definition: A master budget is a document that integrates all the individual budgets prepared by the different departments within a company. It helps to coordinate the activities of the sales, purchasing, production, and other divisions, and provides top management with a tool to monitor the company’s...

Merger

What is a Merger? Definition: A merger is the combining of two companies into a single entity. The intention of forming a new company could be to gain synergies, increase market share, or to reduce costs What does Merger mean? When two companies come together to form a single larger firm,...

Minimum Variance Portfolio

What is Minimum Variance Portfolio? Definition: A minimum variance portfolio is an investment portfolio that seeks to minimize the level of risk that the holder is exposed to. It does this by allocating sums to different financial securities and assets, which, when taken together, reduce the volatility of the portfolio. What...

Minority Interest

What is Minority Interest? Definition: Minority interest is the percentage of equity that minority shareholders have in a company’s subsidiary. In the holding company’s balance sheet, minority interest is recorded in the shareholder’s equity section. What does Minority Interest mean? Minority interest, which is also known as non-controlling interest, always represents...