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Major Trend
Underlying price trend prevailing in a market despite temporary declines or rallies.

Managed Account
This is similar to a discretionary account where a client has given specific written authorization to a partner, director or qualified portfolio manager of an investment dealer to select securities and execute trades, but on a continuing basis and for a fee. Managed accounts can be solicited whereas discretionary accounts are opened as a matter of convenience to clients who are ill or out of the country.

Manipulation
The illegal practice of buying or selling a security for the purpose of creating a false or misleading appearance of active trading, or for the purpose of raising or depressing the price to induce purchases or sales by others.

Margin Account
A client account where he or she uses credit from the investment dealer to buy a security. The client needs to deposit a "margin" amount with the balance being advanced by the investment dealer against acceptable collateral such as investments. The investment dealer can make a "margin call" and demand that the client deposit more money or securities when the value of the account falls below a certain level. If the client does not meet the margin call, the dealer can sell the securities in the margin account at a possible loss to cover the balance owed. The client is also charged interest on the money borrowed from the investment dealer for the purchase of the securities.

Market Maker
An authorized trader employed by an investment dealer who is required by the applicable self-regulatory organizations to maintain reasonable liquidity in securities markets by making firm bids or offers for one or more designated securities.

Market Order
An order placed to buy or sell a security immediately at the best current price.

Market Out Clause
A clause in an underwriting agreement allowing the underwriter to cancel the agreement without penalty for certain specified reasons, such as the issue becoming unsaleable due to an unexpected change in securities markets, or in the affairs of the company whose securities are being underwritten.

Market Price
The most recent price at which a security transaction took place.

Marketable
Easily bought or sold.

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 share ownership of the company that could affect control, or the acquisition or disposition of any securities in another company. A material change must be reported to the applicable self-regulatory organization.

Maturity
The date on which a loan or a bond or debenture comes due and is to be paid off.

Medium-Term Bond or Debenture
A bond or debenture which matures in more than three years, but less than 10.

Member Firm
An investment dealer which owns a seat on a particular stock exchange or is a member of the Investment Dealers Association of Canada.

Merger
The act of one company permanently joining another to become one company.

Minority Interest
This appears on consolidated financial statements where the parent company's figures are combined with those of its subsidiaries. Even if the parent company owns less than 100% of a subsidiary's stock, all of the subsidiary's assets and liabilities are combined in the consolidated financial statements. To compensate, the part not owned by the parent company is minority interest and is shown as a liability on the balance sheet and deducted in the earnings statement.

Monetary Policy
A policy followed by the federal government through the Bank of Canada for controlling credit and the money supply in the economy. The policy will vary according to the anti-inflationary or job-creating results the government primarily desires to achieve.

Money Market
That part of the capital market in which short-term financial obligations are bought and sold. These include federal government treasury bills, short term Government of Canada bonds, commercial paper, bankers' acceptances and guaranteed investment certificates. Longer term securities, when their term shortens to three years, are also traded in the money market.

Mortgage
A contract specifying that certain property is pledged as security for a loan. The money is to be repaid in installments which usually combine principal and interest payments.

Mortgage Backed Securities
Similar to bonds, these securities are backed by a share in a pool of home mortgages insured under the National Housing Act. The securities pay interest and a part of the principal each month and, if home owners prepay their mortgages, may pay out additional amounts of principal before normal maturity. They trade in the bond market at prices reflecting current interest rates.

Mutual Funds
These are open-end funds that are not listed for trading on a stock exchange and are issued by companies which use their capital to invest in other companies. Mutual funds sell their own new shares to investors and buy back their old shares upon redemption. Capitalization is not fixed and normally shares are issued as people want them.