Financial Terms “M”


Financial Terms Dictionary

M


Managerial accounting

Managerial accounting is the use of accounting information by managers to plan, evaluate, and control operations of the firm. Financial accounting is the process of reporting financial information to the public. Managerial accounting is the process of developing internal information for making managerial decisions.


Marketable security

Marketable securities are short-term investments in stocks, bonds, money market funds, or similar investments. They are also called short-term investments. Marketable securities are shown in the current assets section on the company balance sheet.


Market cap

Market cap or market capitalization is the total value of the business. It is the outstanding shares times the market price. For example, if a company has 10 million shares and a market price of $20, the company’s market cap is $200 million.

Index funds may use market cap to classify companies for investments. The companies are described as large cap, mid cap or small cap. The classification can change for different money managers, but here is what FINRA uses for market cap size:

  • Large cap – Market cap of $10 billion +
  • Mid cap – Market cap between $2 billion and $10 billion
  • Small cap – Market cap between $250 million and $2 billion
  • Micro cap – Market cap of less than $250 million.

Microsoft Excel

Microsoft Excel is the leading electronic spreadsheet. It is the primary data analytics tool for most businesses. It is used by an estimated 750 million people worldwide. Excel proficiency is an essential requirement for many business positions.

The current version is Excel 365 included in the Office 365 apps. Previous versions of Excel include Excel 2021, Excel 2019, Excel 2016, and Excel 2013.


Jeff Mankin

Jeff Mankin teaches financial literacy. His website is FinallyLearn.com.

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