Business and Personal Finance Dictionary

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• MARKET INDEX TARGET-TERM SECURITIES
  
  Merrill Lynch's registered derivative product, with a payoff that is the greater of (a) some minimum and (b) issue price times the sum of unity and the rate of increase in value of the underlying price. MITTS don't allow the owners to redeem, nor the issuers to call early. The MITTS is equivalent to a position in the underlying index, plus a protective put. For example, Merrill Lynch has listed on the American Stock Exchange an issue of MITTS with an underlying index proportional to an average of the prices of the ten highest-yielding Dow-Jones Industrials, and maturity on 8/15/06. The minimum payoff of this issue is 124% of the issue price.
  
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