Glossary of Terms

  • Market order

    Any order to buy or sell a specified number of shares, which may be executed either in part or in full, at the prevailing prices in the market at the time the order is executed.
  • Margin

    The amount of money you need to fund a position. Usually you only need between 5% and 25% of the nominal value of an instrument.
  • Margin Requirement

    The amount of money you must have access to when you are trading on margin.
  • Market Abuse

    Is a civil offence (unlike Insider Dealing, which is a criminal offence). It is defined as a failure of a person(s) to behave in a way expected of a regular user of a market. It may include acting based on information not widely available to the market, creating a false or misleading impression, or distorting prices. For example, spreading rumours, submitting incorrect trade details, buying lots of shares to increase a price and then reversing the purchases.
  • Market Capitalisation

    The number of shares in circulation multiplied by their current market value.
  • Market maker

    A securities firm which is obliged to offer to buy and sell securities in which it is registered throughout the mandatory quote period.
  • Market price

    The price of a security. This consists of two prices - the bid price and the offer price.
  • Maturity Date

    The date on which the principal or nominal value of a bond becomes due, and is payable in full to the holder.
  • Memorandum

    When companies are set up, part of the process is to register a Memorandum and Articles of Association with the Registrar of Companies. The memorandum includes the company name, country of domicile, Plc status, objects (what their business does) and their Authorised Share Capital.
  • Merger

    A Merger is the term used to describe the situation when two similar size companies agree to combine and go forward as a single new company.
  • Mid Price

    The mid price is the price you see quoted in the financial pages and on your valuation. It is the halfway point between the bid and offer prices.
  • Mutual fund

    A collective investment scheme in the US that pools investors' money to be invested in stocks, bonds and other securities.