Management fee

An expense paid by an investment company to the investment adviser for managing a portfolio.  As disclosed in the prospectus, this fee is passed onto the investor and is a fixed percentage of the fund’s asset value.  

Market risk
The risk an equity (stock) investor faces due to changes in the level of the overall equity market.  

Maturity date
The date at which a life or annuity certificate matures and the certificate owner must take the endowment amount.  

Medical information bureau (MIB)  
A cooperative organization formed by life insurers to exchange information about the physical condition of prior applicants. It provides only physical and health information.  

Money market fund
A mutual fund investing in short term money market instruments, such as certificates of deposit, treasury bills and commercial paper.  The fund’s net asset value is usually $1 a share, and its interest rate goes up or down.  Most money market funds offer check-writing privileges.  

Debt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan.  

Municipal bond
A debt obligation issued by a state, state agency or authority, or a political subdivision, such as county, city, town or village.  They may be issued for general governmental needs or special projects.  Issuance must be approved by referendum or by an electoral body.

Municipal bond fund
A mutual fund that invests in municipal bonds.  Municipal bond funds are popular with investors who want to reduce their tax burden, because interest on municipal obligations is often free of federal income taxes and/or state and local income taxes.  

Mutual fund
A mutual fund is a pool of securities professionally managed to meet a common objective.  Advantages:  instant diversification, low minimum, professional management for small sums, ideal for dollar-cost-averaging.