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Managed RESP

An RESP where you have professional money managers invest your money for you.

Management Discussion and Analysis (MD&A)

A section of a company's annual report where management discusses how the company is doing and what it expects will happen in the coming year. It may also talk about future goals and new projects.

Management expense ratio (MER)

The yearly cost of a fund investment, whether it makes or loses money. It covers investment management, marketing, administrative costs, and fees to salespeople (called trailer fees). It's written as a percentage of the fund's value, such as 3%.

Management fee

A charge that you pay for having an investment professional manage an investment fund. The fee pays the managers for their time and skills. It may also cover things like communicating with investors and doing all the paperwork needed to run the fund.


A way to buy investments by borrowing money from a stockbroker. You must also invest some of your own money first. The extra that you borrow is your margin. Some rules apply about the size of margin that you can have.

Margin account

An account you open to buy investments using money borrowed from a stockbroker. Limits apply to what you can borrow. Not available from companies registered only as mutual fund dealers.

Margin call

A call that a broker makes to an investor when the margin in their account gets too high. This can happen if the value of your investments drops below a certain level. You will have to put more of your own money into your account to set it right.

Marginal tax rate

The amount of tax that you have to pay on each extra dollar of income you make. As your income rises, so does your tax rate.

Market index

A measure of price changes in a stock market. Based on the performance of selected stocks, bonds or commodities. Examples: Dow Jones Industrial Average, S&P/TSX Composite Index, Standard and Poor's 500.

Market price

The amount you must pay to buy one unit or one share of an investment. The market price can change from day to day or even minute to minute.

Market return

A ratio expressed as a percentage representing the amount earned or lost on your investment.

Market risk

The risk of investments declining in value because of economic developments or other events that affect the entire market. The main types of market risk are equity risk, interest rate risk and currency risk.

Market value

The value of an investment on the statement date. The market value tells you what your investment is worth as at a certain date. Example: If you had 100 units and the price was $2 on the statement date, their market value would be $200.


A guaranteed investment that works a bit like a stock as well. What you make is tied to the performance of an equity investment (such as stock or a stock market index). But you will not lose money if you hold the investment until it matures.

Material change

Any information about the company that would have a significant effect on a stock's price once it becomes known to the public. Examples: Takeover, management changes, new products.


When an investment such as a bond reaches its maturity date. On that date, you get your money back without any penalty. Any interest payments stop.

Maturity date

The date when an investment becomes due. On that date, you get your money back without any penalty. Any interest payments stop.

Maximum loan value

The most a dealer can lend you through your margin account. Based on a set percentage of your margin investment.

Mental Accounting

The reasoning process people use to track their income and various expenditures. This process is influenced by how money is obtained and what it is usually spent on. It affects how people make decisions about their money and can lead to irrational decision making.

Mid-cap stock

The stock of a company that has issued shares worth between $2 billion and $10 billion. Also called "middle cap".

Minimum amount investment prospectus exemption

In Ontario, the minimum amount investment prospectus exemption allows companies to sell their securities to an investor who is not an individual person (such as a company) provided the purchase price of the security is at least $150,000 and is paid, in cash at the time of the purchase.

Minimum deposit

The lowest number of dollars you have to put in a bank account or other investment.

Minimum payment

The minimum amount that you must pay, usually monthly, on a loan or line of credit. In some cases, the minimum payment may be "interest only." In other cases, the minimum payment may include principal and interest.

Minimum wage

The lowest hourly wage a company can legally pay. Different provinces have different minimum wages.

Minimum withdrawal

The smallest sum that you can take out of an account or investment at one time.

Money market

Low-risk investments that mature in less than three years and are very easy to turn into cash. This includes short-term GICs, bonds, and treasury bills.

Money market fund

A fund that invests in short-term, low-risk investments such as treasury bills, bonds and bankers acceptances. Some money market funds specialize in Canadian or US investments or invest only in treasury bills.


A loan that you get to pay for a home or other property. Often the loan is for 20 years or more. You make a set number of payments for a set amount each year.

Mortgage fund

A mutual fund that invests money in mortgages to create income for investors. The income comes from the payments the mortgage holders make.

Mortgage insurance

Insurance you get to cover your mortgage payments in case you get sick, hurt, or die.

Mutual fund

An investment that pools money from many people and invests it in a mix of investments such as stocks and bonds. A professional manager chooses investments that match the fund's goals for risk and return. You can redeem your fund units at any time.

Mutual fund company

An investment company that pools money from investors and invests it in a mix of investments, such as stocks, bonds, and money market investments. Most mutual fund companies offer a choice of more than one fund.

Mutual fund dealer

A company that buys and sells the shares or units of mutual funds for investors.

Mutual fund dealers association (MFDA)

An industry group that represents companies that sell mutual funds. It sets and enforces rules, by-laws and policies for its member firms.

Mutual fund representative

Mutual fund representatives are registered to buy and sell mutual funds on your behalf. The companies they work for are registered as mutual fund dealers.

Mutual fund series

Mutual funds are often categorized into different "series" or "classes" which are designed to provide different benefits for investors and/or different compensation arrangements for the advisors that sell the fund. As a result, each series or class has different fees or expenses, and therefore sees different performance results.

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