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Macro. Prefix meaning large, covering a wide area, often used in connection with economics.

Maintenance. Provision of basic necessities of life by one spouse to another when separated.
Also ‘Alimony’.

Managed Fund. Usually a fund choice with a unit-linked policy Managed funds are generally made up of units from other funds e.g. equity fund, international fund, so that it represents a wide base for the investor happy to accept a medium risk investment. In most cases the fund receives the same investment management attention as any other fund, so perhaps a better name in those circumstances might be 'mixed fund'.

Management Accounting. This describes the analysis of historical and current accounts of revenue and expenses to assist managers in their decision making.

Management Buyout. When the senior management of a company, usually with institutional funding, take control of the company by buying its shares.

Management Charge. An annual charge on investment funds to pay for their management, usually expressed as a percentage of fund value.

Mandate. Instruction, order, permission to allow or permit something to happen. Usually written e.g. bank mandate, as in a standing order to pay sums to another account.

Mandatory. Compulsory, something which must be done.

Margin. The difference between one thing and another. In financial terms, usually relates to percentage differences between costs and prices. In general terms, allowable flexibility between, say, safety and danger.

Marginal. Near the limit of acceptability.

Marginal Cost. The change in cost resulting from production of a single additional unit of production.

Marginal Costing. The assignment of variable costs only to production costs, excluding fixed/overhead costs.

Marginal Tax Rate. The highest tax rate an individual pays, usually taken to mean less basic rate tax (23% in 1998/99).

Market.

1. Place or area where items may be bought and sold.
   

2. Groups of potential purchasers who might buy an item.

Market Level Indicator. An index comparing the values of fixed interest securities and shares, used in determining state scheme premiums.

Market Capitalisation. The value of a company on the market, computed by multiplying the number of shares by the current market price.

Market Counterparty. A category of investor identified under financial services legislation. Person who, in course of own profession, transacts the same type of business as he transacts on his own behalf via an adviser. Deemed to have full understanding of nature and risks of the investment transaction e.g. stockbroker purchasing shares.

Market Maker. A dealer in securities on the stock exchange who deals as principal rather than agent. This used to be the role of the stock jobber.

Market Value. The value of an asset to a third party on the open market.

Matched Bargain. Where the purchase and sale of the same stock are matched, quantity for quantity, at a price agreed by buyer and seller, rather than on the open market.

Material Fact. Information relevant to the discussion or situation e.g. information to be provided on a life assurance proposal form.

Maturity. In financial planning terms, the date at which a financial document or insurance policy becomes payable.

Maximum Contributions. Pension contracts, both PPP and occupational, have maximum contribution levels. The PPP maxima are set out in a fixed table, the occupational effective maxima are generally governed by the projected benefits to prevent overprovision.

Maxi ISA. Can contain all three investment types: cash, life assurance or stocks and shares. Must contain an equity element. Maximum contribution limits apply to each element and total investment. A maxi ISA and mini ISA cannot be established in the same tax year.

Maximum Benefit Regimes. Term used to describe three categories of pension scheme membership used by the Inland Revenue when calculating maximum benefits. Regimes introduced in 1987 and 1989 give rise to three categories: pre '87, '87 - '89 and post '89 membership.

Maximum Investment Plan. Effectively, a unit linked version of the endowment policy i.e. a regular savings plan with life assurance cover, paying out on maturity or earlier death or surrender. The major difference is that MIPs do not attract bonuses, their value depending on the unit price.

McDonald Report. A report produced on training and competence standards in the financial services industry, and making recommendations on competence, training, knowledge, skills and entry level qualifications.

Mean. Short for "arithmetic mean" meaning the average of a group of figures.

Median. A point in the middle of a set of number; a sort of ‘mean’.

Medical Attendant's Report. Evidence, provided by the proposer’s doctor, of a proposer’s medical history which may be required during the underwriting stage of the proposal process.

Medical Evidence. Because of the risk implicit in any proposal of life assurance, an insurance company will reserve the right to call for evidence of the proposer’s state of health during the proposal process.

Medical Examiner's Report. In addition to the medical history received from the proposer’s own doctor in the MAR, it is sometimes necessary to seek additional information regarding current state of health. This is done via medical examination, the result being sent to the underwriting department in the form of a MER.

Medium. A gilt which is due to be redeemed after five to 15 years.

Memorandum of Association. In conjunction with the Articles, the Memorandum forms the official documentation of the limited company. Where the general purpose of the Articles is to govern the internal operation of the company, the Memorandum governs the companies external operations and business relationships.

Mercantile. Relating to business, commercial activity.

Mercantile Agent. See ‘Factor’.

Merchant Banks. A bank which deals in corporate finance rather than domestic bank accounting.

Merchantable Quality. To be fit (in respect of goods purchased) for the purpose for which they are bought.

Merger. The union of two or more companies. Distinct from a takeover where one company purchases another.

Mezzanine Finance. Business finance following the start-up phase of a business. Less risky, in general, than start up finance.

Micro. Prefix meaning very small.

Middle Band Earnings. Earnings between the lower earnings limit and upper earnings limit. Used to calculate an employee's SERPS benefits and National Insurance contributions. Only employer NI contributions payable on earnings exceeding middle band earnings.

Mini ISA. Can contain only one of three investment types: cash, life assurance or stocks and shares. Up to three mini ISAs can be held in each tax year. Maximum contribution limits apply. A maxi ISA and mini ISA cannot be established in the same tax year.

Minimum Contributions. Contribution payable to an appropriate personal pension by the DSS in respect of a member who has contracted-out. Consists of an age related rebate of NI contributions plus basic rate tax relief on employee's element of the rebate.

Minimum Funding Requirement. (MFR) A minimum funding standard that applies to final salary pension schemes. Regulations detail the assumptions to be used in the calculations. If a scheme fails to meet the MFR, action must be taken to restore the funding level within a specified timescale.

Minimum Income Guarantee. (MIG) Means tested benefit to help individuals whose income in retirement is low. Amount of guarantee varies depending upon individual circumstances

Minimum Payments. Minimum amount which an employer must contribute to a contracted-out money purchase pension scheme. Consists of a flat rate rebate paid by the employer, topped up by DSS with age related rebates after the end of the tax year.

Minority Interest. A minority interest arises where a company owns shares in a subsidiary company, but not all of the shares.

Minors. Generally, someone not of voting age.

Minutes. Written record of a meeting.

Mitigate. To alleviate, make less onerous.

Modelling. Using numerical methods and relationships to represent real life situations as a basis for business projections.

Monetarism. Economic theory that the volume of money on issue affects prices; therefore, inflation can be controlled by controlling the money supply.

Money Market Accounts. The money market operates through the buying and selling of short-term loans and securities e.g. Treasury bills and bills of exchange. Private investors, individuals or companies, can invest in this market, usually with a minimum input of £50,000, and receive a higher rate of interest over a shorter term.

Money Purchase. See 'Defined Contribution'.

Monopoly. The control of a market by one source of supply.

Moral Hazard. The potential for the attitudes, lifestyle and conduct of individuals to affect the level of risk attaching to a proposal for life assurance.

Moratorium. A temporary halt.

Morbidity. The incidence of sickness and disability. Used as a guide in calculating PHI premiums, in a similar way to the use of mortality statistics with life insurance.

Mortality Risk. The risk of the life assured dying during the term of the policy.

Mortality Table. A statistical table showing the likelihood of death at any particular age.

Mortgage. A legal charge on a property, giving security for a loan. The borrower (mortgagor) gives the mortgage to the lender (mortgagee).

Mortgage Deed. Evidence of the contract between lender and borrower, secured by legal charge.

Mortgage Indemnity Guarantee. (MIG) A single premium indemnity policy paid for by the borrower which insures the lender against losses in excess of 75% (usually) of the loan-to-value sum.

Mortgage Interest Relief At Source. (MIRAS) Abolished for the majority of new and existing loans with effect from 6th April 2000. System of tax relief on property purchase borrowing, whereby repayments to the lender are paid net of tax on the interest on the loan. The lender then reclaims the relevant sum from the Revenue.

Mortgage Protection. Generally refers to a type of reducing term assurance used in conjunction with a repayment mortgage. The idea is for the sum assured under the policy to reduce in line with the outstanding loan.

Mortgagee. Someone who lends money on suitable security.

Mortgagor. Someone who offers security to be able to borrow money.

Mutual. Relating to two or more involved parties.

Mutual Life Office. A company without shareholders, and effectively owned by the with-profits policyholders, who are entitled to a share of any surplus funds at valuation. These ‘surplus’ distributions are termed bonuses.