Glossary

Main residence

The place where you normally live and consider to be your home.

Management buy-in

The purchase of a company by outside investors who bring in new management.

Management buy-out

The purchase of some or all of a company’s shares by its managers in order to run the company independently.

Marginal cost

The incremental cost attributable to one extra unit of production.

Market capitalisation

Calculated by multiplying share price as quoted on an exchange by the number of shares in issue. This gives the market value of a company.

Market trend

The general direction of overall price movements in a market.

Market value

The price which you can obtain for an asset if you sold it freely on the open market.

Marketable security

A tradable equity that is classified as a current asset.

Married couples allowance

An extra tax allowance you are entitled to if you are married.

Matching

The principle that costs/liabilities are matched with corresponding income/assets.

Maturity date

Date at which an asset or liability becomes repayable.

Memorandum of association

Company document containing items such as name, objects and powers, and original share capital.

Merger

The process of two companies becoming one.

Monetary policy

The control of the money supply and interest rates by a government or central bank.

Money laundering

The manipulation of money, usually originating from an illegal source, so as to seem to have originated from a lawful one.

Money Purchase Scheme

Pension scheme in which benefits are dependent on contributions and growth of the fund.

Mutual Fund

Scheme enabling investment by small private investors in shares, bonds and other securities.