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FINANCIAL
GLOSSARY : M
Margin
Using short-term
borrowing within a brokerage account to buy securities.
Market capitalisation
The market value
of a company which is calculated by multiplying the number of shares
in issue by the current price of the shares.
Market maker
Dealers on the stockmarket
who buy and sell stocks and shares on their own behalf to make a profit.
Maturity
Term used to describe
the period when an investment comes to end, and, in the case of bonds,
loanstock, or debentures, when the nominal capital is repaid to the
holder. Also known as redemption.
Monetary
policy committee (MPC)
The Monetary Policy
Committee was set up in May 1997 by Gordon Brown the Chancellor of the
Exchequer to decide the level of interest rates. The MPC is made up
of nine members, the Governor of the Bank of England, the Deputy Governor
and second Deputy Governor and six other members; two are from the Bank
with responsibility for monetary policy and market operations. The remaining
four members are "recognized experts" from outside the bank.
The MPC meets every month to discuss and vote on whether to increase
interest rates or not. The committee replaces the monthly meetings between
the Chancellor and the Bank Governor that previously took place to decide
the level of interest rates.
Mortgage
indemnity guarantee (MIG)
An insurance which
is designed to protect a mortgage lender against the risk of you defaulting
or not being able to repay the mortgage. The policy is usually imposed
upon by the lender at the start of the loan and the premium payable
is determined by the level of perceived risk to the home lender of you
defaulting on the loan.
Mortgage
protection policy
A life insurance
policy that pays off your mortgage if you were to die during the mortgage
term.
Mutual funds
Pooled funds from
investors for investment by an investment company in shares of other
companies, in accordance with a stated set of objectives. Unlike investment
trusts mutual funds are open-end funds where the investor may redeem
his/her shares at any time at the prevailing market price.
Mutuality
Term used to describe
an organisation owned by its members for their own benefit, e.g., Building
societies and Insurance companies.
