PART II OF A MODERN FINANcial lexicon, inspired by Ambrose Bierce's The Devil's Dictionary. Part I appeared in the August issue.

M * Mark-to-model: The use of a mathematical model to value complex securities. "The combination of precise formulas with highly imprecise assumptions can be used to establish practically any value one wishes" (Benjamin Graham). Useful to investors who wish to delay the recognition of a loss. See CDOs.

Master limited partnership: A clever corporate structure favored by private equity and hedge funds for going public. Provides investors with few governance safeguards while allowing asset managers to avoid paying corporate taxes on their earnings.

Mortgage broker: A person who, in exchange for a fee, will exaggerate the income of a mortgage applicant.

Mortgage-backed securities: A former blue chip of the Wall Street casino that is rapidly losing currency. See withdrawals.