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major shareholders
Up to the 10 largest shareholders in a company owning at least 5 per cent of the equity each.
management buy-in
Purchase of a troubled company by investors who offer a new set of managers.
management buy-out
the purchase of a company by its managers, usually with outside backing.
margins
Profit margin is trading profit as a percentage of revenue. Reflects the underlying profitability of the business, not whether the company is making money for shareholders. It is calculated before interest charges and tax. In financial markets, a margin is a deposit required to make a transaction.
margin call
Demand by a broker to a client to increase the margin or deposit which is required to make a transaction. This is usually because a potential loss seems more likely or larger than previouslyexpected. Markets and clearing houses set compulsory margin requirements which may be varied.
market capitalisation
Value at current market prices of a company's equity capital. It equals the share price times the number of shares outstanding.
merchant bank
Specialised bank offering investment services, corporate advice, trade and project finance, exchange rate dealing, etc to clients worldwide. It also acts as an issuing house for stocks and bonds, and advises companies involved in mergers and acquisitions.
minimum lending rate
Minimum rate of interest at which the Bank of England was willing to lend to the money market; discontinued in 1981, but occasionally reused in moments of crisis.
monetary compensatory amounts (MCAs)
Part of a complicated system of levies and subsidies designed to iron out currency-related distortions in EC cross-border farm trade.
money supply
Total amount of money in an economy. In the UK, the most widely used definitions are M0, the wide monetary base, which consists of notes and coins in circulation outside the Bank of England, plus bankers' operational deposits within the bank; and M4, which consists of the private sector's holdings of notes and coins and all sterling deposits at UK banks and building societies. In Germany, M3 includes cash in circulation, current accounts and short term deposits.
multinational
Company with subsidiaries or manufacturing bases in several overseas countries.
mutual fund
US name for unit trust.
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