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M0
Narrowest measure of the money supply comprising notes and coins.
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M2
Measure of the money supply comprising M0 plus sight deposits.
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M4
Measure of the money supply comprising M2 plus all bank and building society deposits.
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Managed Account
An investment account that is owned by an individual investor and looked after by a hired professional money manager. In contrast to mutual funds (which are professionally managed on behalf of many mutual-fund holders), managed accounts are personalised investment portfolios tailored to the specific needs of the account holder.
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Mandate
A command or authorisation to act in a particular way on a public issue given by the electorate to its representative.
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Mandatory Quote Period
The period from 8.00am to 4.30pm during which market makers are obliged to quote from two way prices for UK company shares in which they make a market.
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Margin
Assets (cash or securities) deposited as collateral to cover open market positions and guarantee that clients are able to meet their financial commitments attached to a particular transaction. It is also used to describe high risk method of trading in which clients take short term trading positions on credit.
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Margin Call
A request by one party in a transaction for variation margin to be transferred by the other. See Margin.
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Market
An interface for the trading of securities, good or services. Generally, prices will be influenced by levels of supply and demand within a market.
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Market Capitalisation
The total price of a company’s shares in issue. The value of a listed company.
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Market Maker
A trader who works for an organisation such as an investment bank. They quote bids and offers in the market and are normally under an obligation to make a price in a certain number of contracts. They create liquidity in the contract by offering to buy or sell.
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Maturity
The date on which a loan security (bond, gilt) is due to be repaid. This represents the end of the life of the security.
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Medium Dated Gilts.
Gilts between 7 and 15 years until redemption.
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Merchant Bank
Historic phrase used to define an organisation that specialises in advising on takeovers and corporate finance activities.
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Merger
The act of two or more organisations joining together all or part of their operations, usually motivated by a desire for two companies of roughly equal size to pool their resources into a single business.
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Mid cap
A company with a market capitalisation between $2 and $10 billion, which is calculated by multiplying the number of a company's shares outstanding by its stock price. Mid cap is an abbreviation for the term "middle capitalisation".
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Minimum Quote Size (MQS)
The minimum amount at which a normal market maker is allowed to quote for a SEAQ security. It is defined as 1 x the normal market size (NMS).
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Modified Duration
The proportionate change in a bond’s price for a unit change in yield. Commonly referred to as volatility. Mathematically, it is defined as the first derivative of a bond’s price with respect to its gross redemption yield, divided by that price.
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Monetary Policy Committee (MPC)
Committee chaired by the governor of the Bank of England, which sets interest rates.
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Money Supply
The measure of money available in an economy. There are various types of measurement such as MO, the narrow assessment of notes and coins in issue and M4, a wider measure taking into account cash deposits.
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Monopolies and Mergers Commission (MMC)
Operates in an advisory capacity to the Department of Trade & Industry regarding the competitive implications of proposed mergers and acquisitions.
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Mortgage
A form of security on borrowing commonly associated with home borrowing.