School Articles

Market timing is the act of moving in and out of the market and switching between different segments and securities basing one’s decision in the economic data and technical indicators. Those who use this strategy are often not as profitable as those who remain invested as it is impossible to predict the movement of the market.

Market surveillance is the act of prevention and investigation of abusive behavior and manipulation of the market. It helps make sure that the market securities are traded fairly and that market as a whole is orderly. Without surveillance it would be easy to manipulate the market and simulate economic growth. That would lead to the crash of the system.

The process of holding the market includes buying a security in the times of rapid and steep falls in an attempt to hold the price for the security or to provide a necessary support level. It is banned in most markets as it is an unnatural manipulation of the market.

MSCI World (Morgan Stanley Capital International World Index) – market index that reflects the situation in the world markets. It consists of the shares of 1649 companies from all over the world. It has all of the developed countries’ stocks inside of it.

Mothballing is an attempt to save financial assets with the aim to use them later. Can also refer to an attempt to set aside an idea or an object for a later use and implementation.

Mark-to-management is valuation, assigned to the assets or securities of the company by the management of the said company. It is a practice widely used in the times of financial crisis, when market price-assignments is threatening to the securities as it can wipe millions of dollars if left alone.