 |
|
|
|
|
Management company |
|
The entity within a mutual fund complex responsible for the investment of
the fund's portfolio and/or the administration of the fund. It is compensated
on a percentage of the fund's total assets. |
| |
|
|
|
|
Management expense ratio (MER) |
|
A measure of the total costs of operating a fund as a percentage of average
total assets. |
| |
|
|
|
|
Management fee |
|
The sum paid to the investment company's adviser or manager for supervising
its portfolio and administering its operations. |
| |
|
|
|
| |
|
|
|
|
Margin |
|
The minimum equity required to support an investment position. To buy on
margin refers to borrowing part of the purchase of an underlying asset from
a brokerage firm. |
|
Market index |
|
See Stock index. |
| |
|
|
|
|
Market-if-touched (MIT) order |
|
An order that becomes a market order when the market trades at a specified
price at least once. |
| |
|
|
|
|
Market-maker |
|
An individual or firm that buys and sells an instrument with its own capital
in order to provide liquidity to the market. |
| |
|
|
|
|
Market-not-held order |
|
A type of market order which allows the investor to give discretion to the
investment advisor regarding the price and/or time at which a trade should
be executed. |
| |
|
|
|
|
Market-on-close order (MOC) |
|
A type of option order which requires that an order be executed at or near
the close of trading on the day the order is entered. A MOC order, which
can be considered a type of day order, cannot be used as part of a Good-'til-cancelled
(GTC) order. |
| |
|
|
|
|
Mark-to-market |
|
An accounting process by which the price of securities held in an account
are valued each day to reflect the settlement price. The result of this
process is that the equity in an account is updated daily to properly reflect
current asset prices. |
| |
|
|
|
|
Market order |
|
A trading order placed with a broker to immediately buy or sell a security
at the best available price. |
| |
|
|
|
|
Market price |
|
The most recent price at which a security transaction took place. |
| |
|
|
|
|
Market quote |
|
A quotation of the current best bid/ask prices for a security in the marketplace.
This information is usually obtained by the investor from someone at a brokerage
firm. However, for listed options and stocks, these quotes are widely disseminated
and available through various commercial quotation services. |
| |
|
|
|
|
Married put strategy |
|
The simultaneous purchase of a quantity of securities and put options representing
an equivalent number of the same security. This is a limited risk strategy
during the life of the puts because the security can always be sold for
at least the strike price of the purchased puts. |
| |
|
|
|
|
Material change |
|
A change in the affairs of a company that is expected to have a significant
effect on the market value of its securities. Under the principle of continuous
disclosure, a reporting issuer in Ontario must issue a news release as soon
as a material change occurs within a company. |
| |
|
|
|
|
Maturity |
|
The date at which a loan or bond or debenture comes due and must be redeemed
or paid off. |
| |
|
|
|
|
Member firm |
|
A securities dealer which is a member of an exchange, a clearing corporation
or the Investment Dealers Association of Canada. |
| |
|
|
|
|
Mixed lot (Broken lot) |
|
An order with a volume that is a combination of any number of board lots
and an odd lot. |
| |
|
|
|
|
Model |
|
A mathematical formula used to calculate the theoretical value of an option.
(See Black-Scholes formula.) |
| |
|
|
|
|
Money market |
|
A sector of the capital market where short-term obligations such as Treasury
bills, commercial paper and bankers' acceptances are bought and sold. (See
Black-Scholes formula.) |
| |
|
|
|
|
Money market fund |
|
A type of mutual fund that invests primarily in treasury bills and other
low-risk, short-term investments. |
| |
|
|
|
|
Mortgage fund |
|
A mutual fund that invests in mortgages. Portfolios of mortgage funds usually
consist of first mortgages on Canadian residential property, although some
funds also invest in commercial mortgages. |
| |
|
|
|
|
Mortgage-backed securities |
|
Certificates that represent ownership in a pool of mortgages. The holders
of these securities receive regular payments of principal and interest.
|
| |
|
|
|
|
Must be filled (MBF) order |
|
These are the pre-opening orders to buy or sell shares of stocks upon the
options’ expiration. They are guaranteed a complete fill at the opening
price to offset expiring options. At The Toronto Stock Exchange, these orders
must be entered between 4:05 p.m. and 5:00 p.m. on the Thursday prior to
the third Friday of each month. |
| |
|
|
|
|
Mutual fund |
|
A fund managed by an expert who invests in stocks, bonds, options, money
market instruments or other securities. Mutual fund units can be purchased
through brokers or, in some cases, directly from the mutual fund company.
|
| |
|
|
|
