Financial Glossary – M

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Machiavellianism – a political theory or belief which supports the use of any means necessary to stay in power. It is also a term in modern psychology that describes manipulative people who lack empathy and will lie and deceive to achieve their goals.

Machinability – a characteristic of a material, e.g., a metal, that makes it easy to cut, grind, drill, or shape. In other words, how easily we can ‘machine’ it into the shape we want.

Machine – 1. A device made of moving parts for applying mechanical power. 2. An extremely well-organized and efficient system or organization. 3. To machine means to make. 4. To machine can also mean to cut, slice, grind, and shape something until we have the finished product. There are other meanings.

Machine Bureaucracy – a formalized and highly-specialized management structure in which decisions are made at the top. Employees and middle/lower managers carry them out. This structure is common in very large, established corporations and government organizations.

Machine Code – or machine language is a computer programming language consisting of strings of ones and zeros. Computers can respond to it directly, i.e., without any conversion of direction.

Machine Instructions – instructions that a computer’s processor understands because they are in machine code or machine language. One machine instruction consists of many bytes of memory. It tells the processor to perform one machine operation. A computer performs a huge number of operations every second.

Machine Learning – an artificial intelligence application that gives computers and smart machines the ability to learn from experience. In other words, to learn without human intervention. Machines that can ‘learn as they go along’ have machine learning.

Machine-to-Machine (M2M) – the direct communication between devices using wired or wireless networks, enabling automation and real-time data transfer without human involvement.

Macroeconomics – a branch of economics that is concerned with general or large-scale economic factors, such as national output, interest rates, unemployment and prices (inflation). It contrasts with microeconomics, which focuses on the behavior of individual consumers, households, workers, companies and markets. The macroeconomy equals the total sum of all microeconomic activities.

Macros – 1. Keystroke instructions that can perform specific tasks. We are familiar with the macros in word processors such as Word. 2. A short term for a macro lense. 3. Overall or large scale, as in macroeconomics. 3. Macronutrients, which include fats, proteins, and carbohydrates.

Mad Cow Disease – the non-scientific term for BSE or bovine spongiform encephalopathy. The cow’s nervous system is affected; holes are formed in the brain. It loses coordination, becomes nervous and sometimes extremely aggressive (hence the name ‘mad’). It is a fatal non-curable and non-preventable disease.

Made-to-Order – has the same meaning as the entry below. Fast-food restaurants, such as McDonald’s or Pizza Hut, don’t assemble their meals until customers’ have specified what they want. These restaurants have a made-to-order system.

Magazine – a general interest publication that comes out weekly, fortnightly, or monthly. In printed form, they have a paper cover, contain stories, pictures, articles, and adverts. Today, most of them are available online. AARP The Magazine, has the most readers of all magazines in America.

Magistrate – in the UK and many Commonwealth countries, a magistrate is a civilian who works as a judge in a court (Magistrate’s Court). The term does not have the same meaning in the US as it does in most other English-speaking countries. Magistrates have been around for thousands of years. They existed in ancient Rome.

Maintenance – the process of maintaining something in good or workable condition. We can use the term for things or people. It can also mean to provide somebody with living expenses. There are four main types of maintenance.

Mainstream Economics – the theories of economics, body of knowledge, and models as taught across universities and colleges, that economists generally accept as a basis for discussion. Mainstream economics, which contrasts with heterodox economics, is orthodox economics.

Main Street – a term that refers to the most important street in a village or town. Its main shops, banks, post office, and other services are there. In England and Wales, people use the term High Street. The term also refers to the average American, as opposed to big business or wealthy individuals.

Major Currencies – the most commonly-quoted currencies in the world. The currencies against which we most commonly compare a local currency. We also call them the Majors.

Majority Interest – when an entity has a majority interest in a company, it means that they own more than half the shares. It means the same as a controling interest. The term may apply to a company, person, group of people, and also the government.

Majority Ownership – possessing over fifty percent of a company’s common stock or ordinary shares. The person, company, group of people, or entiry that has a majority ownership controls the company. We also use the terms controling interest and majority interest.

Majority Shareholder – a person or entity that owns more than 50% of the common stock (ordinary shares) of a company. They can choose the members of the board of directors and make policy decisions. Also known as a majority interest or controlling shareholder.

Major Market Index – officially called the NYSE Arca Major Market Index. It consists of 20 blue-chip stocks, seventeen of which also appear in the Dow Jones Industrial Average. Trading in futures and options is based on this index.

Make-to-Order – a manufacturing process in which the company waits till a customer’s order comes in before making the finished product. The customer places the order first, then the company manufactures the good. We also call it Build-to-Order or BTO.

Make to Stock – or MTS is a business strategy in which the company produces goods beforehand to make sure stocks can meet anticipated demand. The company forecasts future demand and prepares for it by building up inventory (stocks). It is similar to Just in Case, but contrasts with Make to Order.

Male Chauvinism – the belief that males are superior and more important than women. This belief is not supported by realiable or compelling evidence. A person who believes and practices male chauvinism is a male chauvinist.

Malware – software that a programmer has deliberately designed to disrupt or damage a computer system. Examples include scareware, visurses, worms, Trojan horses, spyware, and adware. Malware starts damaging after it has gained acces to a computer system.

Managed Account – an investment account that an investment manager manages for his or her client. The client could be a person, company, or any entity with funds.

Management– this involves the leadership, staffing, organization, and planning of a company to reach a goal or target. The term refers to either the people who manage, or the function of managing.

Management Accountant – a professional who analyzes financial data to help businesses make informed decisions. They focus on budgeting, forecasting, cost control, and performance evaluation, providing insights that guide internal strategy and operations, ensuring the company meets its financial and organizational goals.

Management Consultant – a consultant that helps companies and other organizations improve their performance.

Manager – a person in a company or organization who exercises managerial functions primarily. These functions include hiring, firing, disciplining, doing performance appraisals, monitoring attendance, approving overtime, and authorizing vacations. The manager is in charge of a part of a company, which usually has a team of employees.

Manufacturing – the process of converting raw materials and components into finished products. Manufacturing takes place in a factory. It usually involves making things on a large scale.

Margin – the difference between one price and another, usually related to the profit a trader or speculator can make. For a trader, it is the difference between the cost of production or purchase of a product, and how much it is sold for. In futures trading it is the difference between the current and future price.

Marginal – in business, economics and finance, the term usually has a similar meaning to ‘additional’ or ‘by adding one more’. For example, marginal price is the price of buying one more – imagine you bought 10 cars for your fleet, and then asked for one more in the order; it is the price of that extra one. There are many terms with the word ‘marginal’, such as marginal cost, marginal propensity to spend/save, marginal revenue, marginal utility, marginal output of labor, and marginal tax rate.

Market – a place where people and businesses gather to buy and sell products and services. The term may refer to a physical place, such as a flea market, store, or farmers market, or an abstract description that includes all the possible buyers, as in “The semi-conductor market is forecast to grow by 7% this year.”

Marketability – the term may refer to things or people. If I am selling my house, I can improve its marketability if I convert the loft into another bedroom. In other words, the conversion makes it easier to sell the house. If I study for a degree, I improve my marketability, i.e., I become more attractive to employers.

Marketable – refers to a product that is easy to sell or a person who is in demand in the job market. We can use this term for goods, people, or skills. For example, nursing is a marketable skill, i.e., employers are always looking for nurses.

Market Analysis – studies that people carry out on any market. They aim to anticipate or predict which way prices or growth rates will go. Often, the term on its own refers to an analysis of a stock, commodity, or bond market.

Market Attrition – the gradual erosion of customer loyalty due to the absence of effective advertising and promotions. We also call it customer turnover, customer churn, customer defection, or customer attrition.

Market Capitalization – the net value of shares issued by a public company. Market capitalization is determined by multiplying the price per share by the number of shares outstanding. It is one of the main factors in determining stock valuation.

Market Development – a marketing strategy whereby a company tries to get more sales from an existing product. This may involve trying to get existing customers to spend more, or new customers to buy the product. The strategy may focus on just one product or the company’s overall sales. Market development applies to the promotion of existing products and services.

Market Economy – an economy where prices are set by levels of supply and demand, rather than central or local government. All decisions regarding production, distribution, investment and salaries in a market economy are driven by market forces.

Market Equilibrium – a situation in which demand for a good or service is equal to its level of supply. When market equilibrium is reached, the price remains stable. Also known as the market clearing price.

Market Failure – when the market does not function as efficiently as it is capable of. Market failure typically has four causes: 1. Deficiency in the provision of public goods. 2. Externalities, such as a factory polluting the drinking water of nearby villagers. 3. The abuse of market power, such as monopolistic behaviors. 4. Asymmetric information – when one person knows more about something than the other person in a business transaction.

Market Follower – a company that follows the market leader in a sector. It does not want to challenge the leader. It copies all the leader’s successful strategies and implements them. The market follower just wants to maintain its market share. It is happy with the current status quo, i.e., that the leader remains on top.

Market Forces – the forces of supply and demand, which in a free market economy determine the price of goods. When demand rises faster than supply, prices rise, when it is exceeded by supply, prices fall.

Market Garden – a small farm that grows vegetables, fruits and flowers and sells them to the public. The crops are grown for profit. Also known as a microfarm.

Market Index – comprises numbers that represent weighted values of different components that make up the index. The components may be company stocks, commodities, bonds, parts of the economy, or the prices of goods. The term, when we use it on its own, usually means stock market index.

Marketing: refers to analyzing the market, determining what consumers want, finding out whether your company can produce it at the right price, producing it, and then selling it to them. It is an aggregate of functions related to the movement of goods from producer to consumer. Marketing is much more than simply promoting a product – it involves all the activities from before the product has been developed, through to after it has been sold.

Marketing Campaign – a plan that details a comprehensive course of action to sell and/or promote a product, service, or brand. Marketing campaigns are part of the umbrella term ‘marketing.’

Marketing Mix – a planned combination (mix) of elements that make up a marketing plan for a good or service. The four elements all start with the letter P: Product, Price, Place, and Promotion. Hence, we refer to them as the 4Ps.

Marketing Manager – a person in the company who tries to understand the market and match its products for that market. The marketing manager controls all the promotional and market research/study activity of the company. The role of a marketing manager is different from a sales manager’s.

Marketing Plan – a document that details a business’ marketing efforts for a future period, such as six-months or twelve-months. It states in detail what the company’s marketing goals and objectives are.

Marketing Principles – agreed-upon marketing ideas that businesses use for a successful marketing strategy. We also refer to it as the Principles of Marketing. Marketing Principles can be used for products or services.

Marketing Research – the systematic collection of data about components in the market such as rivals, consumers, similar products, etc. Marketing executives and senior managers analyze the data before making important company and product decisions.

Marketing Strategy – a business’ marketing goals and objectives combined into one comprehensive plan. You can draw on market research and other relevant marketing data to create an effective marketing strategy. It is not the same as a marketing plan. The ‘strategy’ describes where you want to get to, while the ‘plan’ describes ‘how’ you plan to get there.

Marketing Tactics – all the actions in detail to achieve a marketing strategy. A set of strategic methods aimed at promoting a company’s goods or services. It is not the same as marketing strategy, which is a general goal.

Marketing Tools – tools that businesses use to promote and develop their products and services. In most cases, companies use a range of marketing tools simultaneously.

Market Intelligence – the gathering and analyzing of data about products, customers, competitors and their products, etc., in a specific market, that a company uses to help it determine where to allocate more resources, what products to sell, and how much to charge for them.

Market Jitters – a feeling of fear, uncertainty, and apprehension among investors and stock market traders. Market jitters often causes investors to sell stocks and bonds, which subsequently pushes down their prices. Economic indicators, reports of bad profits, and political instability, for example, can make investors nervous.

Market Leader – a corporation or country that has the greatest sales in a specific product in the market. The market may be a country or the world. It is calculated either by volume or value of sales.

Market Maker – a company or individual that regularly buys and sells securities at a publicly quoted price to provide liquidity to the markets.

Market Orientation: – a business philosophy or culture where the number one priority is identifying what the customer wants and needs, and meeting that need with suitable products and/or services. It contrasts with product orientation, which focuses on the product and tries to persuade customers to buy it. The most successful commercial enterprises today are definitely market oriented.

Marketplace – 1. an open space or square in a town or city where people trade, i.e., buy and sell things. 2. The ‘market’ in the abstract sense. 3. The online marketplace is where people can buy and sell things online. Amazon.com, for example, is a massive online marketplace. 4. A service that helps people shop for health insurance and also enroll.

Market Power – the extent to which a company can influence the price or supply of a good or service. Market power may refer to a producer or buyer. It is a firm’s ability to profitably increase the market price of a product over marginal cost. In a marketplace where perfect competition exists, market power is zero for all the competitors. If a company is the only supplier – a monopoly – its market power is absolute.

Market Rate – the usual price paid for a product, service or somebody’s labor in the open market. Also known as the going rate.

Market Research – the gathering and analyzing of data regarding customers, competitors, a product, and market trends. It is the study of how a product or service is sold, who buys it, why they buy it, and how competitors behave.

Market Risk – the risk that an investment might face due to market volatility and changes in the overall economy. Market risk can reduce the value of an investment. Also known as systematic risk.

Market Sector – part of the economy. Market sector covers a broader area than an industry. Some sectors may include two or more industries. Stock markets classify shares according to market sector. In bond markets the term refers to the type of issuer (government or company).

Market Segmentation – businesses should ensure that their products are being properly targeted for the right consumer base. Market segmentation is a strategy that focuses on targeting different consumer bases – which attracts more consumers, and consequently boosts sales.

Market Sentiment – in financial world refers to the overall attitude of investors toward a particular security, sector, or financial market, influencing trading behavior and price movements. It’s driven by emotions, news, and economic indicators, impacting investment decisions and market trends.

Market Share – refers to how big your slice of the total market pie is, in percentage terms. In other words, what your total sales represent relative to the size of the industry. Market share may be measured by units sold, or the value of total sales.

Market Trends – overall patterns in which markets move, encompassing rises or falls in stock prices, consumer behaviors, and economic conditions over a given timeframe.

Market Value – the price that buyers and sellers both agree on when a security or asset is traded on the open market, based on the forces of supply and demand. A company’s market value is what investors believe it is worth. Also known as market price, fair value, fair market value and open market value.

Market Volume – the total amount of transactions in a specific marketplace over a given period. When looking at stock exchanges, we use the term ‘stock market volume.’

Markup – 1. The amount a seller adds to the cost price, i.e., the difference between the wholesale and retail price. It does not mean the same as margin. 2. The process of correcting text before it goes to print. 3. A line-by-line review of a budget by a committee.

Marshall Plan – a US program of international aid, named after General George Marshall, destined for Western Europe after WWII, to help the war-torn countries get back on their feet. It formed part of the ‘Truman Doctrine’, President Harry Truman’s attempts at stopping the spread of Soviet communism in Europe. During the Marshall Plan – 1948-1952 – the United States and Canada donated 1% of their gross national product.

Material Nonpublic Information – confidential information that can affect the share price of a company, or how investors make decisions. Only a small number of corporate insiders currently know about this information. Acting on this information to sell or buy shares, before the public has access to it, is known as insider trading and is illegal. Passing on material nonpublic information to others is also illegal.

Matrix organization – a management structure in which some employees are responsible to managers in two or more different departments within a company. An engineer may have to report to the head of the engineering department as well as the project manager or product manager. Matrix organization structures emerged in the 1960s in the aerospace industry in the United States.

MBA – Master of Business Administration or Masters in Business Administration. It is an advanced degree that concentrates on developing the skills that people need to manage or run a business.

M-Commerce – a part of e-commerce in which people buy and sell using mobile phones (smartphones) and other wireless handheld devices. M-commerce stands for mobile commerce.

Media the plural of medium, describes the various ways through which people communicate in society. It refers to the communication channels through which news, movies, music, promotional messages, education and other data are disseminated. It includes newspapers, magazines, books, TV, radio, billboards, and the Internet.

Medical Consultant – a senior doctor with several years of specialist training.

Medical Device – a machine, apparatus, device, or piece of equipment that has been made for a medical application or purpose. The term includes hundreds of different products, from gauze and bandages, to an MRI machine or CAT scanner.

Medical Tourism – refers to traveling to another country for medical treatment.

Medicare – the federal healthcare scheme for those aged 65 and older in the United States. It also covers younger people with disabilities and certain diseases. Medicare is also the official name of Australia’s publicly funded healthcare and the unofficial name of Canada’s system. This article describes the U.S. scheme.

MEDDIC Sales Framework – a sales qualification methodology that focuses on understanding and addressing key factors like Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion within the customer’s organization to improve the likelihood of closing complex B2B deals effectively.

Mercantilism – an economic theory and practice that was common in Western Europe from the 16th to 19th century. Mercantilists believed that global GDP was fixed, so that a country could only become wealthier at the expense of others. Governments tried to get domestic producers to export as much as possible, and kept imports down to a minimum by placing hefty taxes on them. Countries like Great Britain, France, Spain and Portugal gained colonies in order to expand their markets, and accumulated as much wealth, gold and silver as possible.

Merchandise – any type of product, including commercial or personal goods, as well as commodities that are sold or given away to the public (retail) or other commercial enterprises (wholesale). When a political party gives away T-shirts with a photograph of its candidate during an election campaign, it is an example of free merchandise. The aim in merchandising is to get consumers to spend their money, or encourage customer loyalty.

Merchandising – all activities related to the promotion of goods in a retail setting, such as a supermarket. A merchandiser decides how to display a product, where, what special offers to include, and how much to sell it for.

Merger – the combination of at least two companies into a new legal entity. A merger is a marriage of equals, unlike an acquisition or takeover, where there is a predator and a prey – one company literally consumes the other.

Mergers and Acquisitions (M&A) – a practice of corporate finance that deals with combining, dividing, selling, and buying different companies to create a new enterprise, merge them together, or help a company complete a takeover. A merger is a marriage, while an acquisition is a takeover.

Mental Health – our psychological, emotional, and social well-being. People who enjoy good mental health, do not live with a mental illness. Mental health is a vital component of overal health.

Menu Costs – in economics the term refers to the costs to a company resulting from a price change. It will have to redesign its catalogue, get new ones printed, tell customers about the change, and perhaps hire a team of price experts. Companies are reluctant to change prices for this reason. In times of high inflation, menu costs can significantly undermine a firm’s ability to make a profit. Studies have shown that menu costs amplify the business cycle.

Meta Tags – short pieces of HTML text that describe a web page’s content. If well-written, they can help optimize a web page’s ranking.

Metaverse – the next step in technology following virtual reality and augmented reality. In this case, however, it will span the whole of the Internet. People will experience ‘life’ inside the Internet’s digital environment, probably with an avatar.

Metrics – a set of numbers and statistics that provide information about a business’ performance or a specific activity or function. Metrics tell us how well or badly we are doing and whether we are going in the right direction.

Methane – a compound with the chemical formula CH₄, is a common fuel source. It is the main component of natural gas. It is an attractive fuel for us because it is so abundant. It is also a very potent greenhouse gas.

Microchip – a small electronic device made from a semiconductor material, typically silicon, that contains an integrated circuit. It houses thousands or millions of tiny components like transistors and capacitors, which process data and control functions in electronic devices like smartphones, computers, and other digital systems.

Microeconomics – the study of the economic behavior of individual units of a country’s economy, such as a firm, household or person. It contrasts with macroeconomics, which is the study of the aggregate economy. Microeconomics is mainly concerned with the factors that influence individual economic choices.

Microlearning – an educational strategy that delivers information in small, focused units or modules, typically lasting between 5 to 20 minutes. It emphasizes short bursts of content to boost retention, engagement, and adaptability, making it ideal for skill-based or knowledge-focused learning in education and workplace training.

Milestone – a significant event or achievement that marks a critical point or stage in the development or progress of something, such as a project, company, or individual’s life.

Millennial Generation – refers to people born in the early 1980s up to about 1995, and in some cases the end of the last century. Also known as Generation Y, the Echo Boomers, the Me Me Generation and the Boomerang Generation. Unlike previous generations, most Millennials were brought up in homes with Internet connection and electronic devices & games in their homes.

Mindfulness – a state of being utterly aware of what is going on inside and outside ourselves, on a moment-to-moment basis. It is a way of fusing the mind and body, releasing tension and pain, and regaining pleasure and happiness.

Minimum Wage – the lowest amount an employer is legally allowed to pay a worker. It is always calculated at an hourly rate. Employers can pay more but never less than the minimum wage. More than ninety countries across the world have a minimum wage.

Minimum-variance portfolio – this is a portfolio with the lowest risk possible. Each individual investment has a higher risk than all of them combined.

Misery Index – the sum of a nation’s unemployment and inflation rates. It is an informal measure of how healthy or unhealthy a country’s economy is. The lower the score the better off a country is, the higher the score the worse off it is. There are some variations – the Barro Misery Index or BMI adds to the Misery Index total the interest rate, plus (minus) the surplus (shortfall) between the actual and trend rate of GDP growth.

Mobile-First Indexing – a method used by search engines to crawl web pages with mobile versions as a priority. For example, with Google craw bots, the mobile version serves as both a starting point and a major determinant for a page’s ranking.

Modern Portfolio Theory – a financial theory that attempts to achieve the best expected return for a specific level of risk, or the smallest possible risk for a set level of expected return. This is possible if the investor carefully chooses the proportions of different assets. It is a mathematical formulation.

Monetarism – a school of thought that says that high inflation is caused by increasing the money supply faster than GDP growth. If you manage to control the money supply, monetarists say, the rest of the economy will take care of itself. Monetarism contrasts with the Keynesian economic policies of demand management. President Ronald Reagan and Prime Minister Margaret Thatcher were great believers in monetarism. Their monetary policies were influenced by one of the pioneers of monetarism theory, Milton Friedman.

Monetary Policy – the decisions a Central Bank of a country makes to manage the money supply and make sure inflation is on target and that the economy is moving in the right direction. During a recession, monetary policy will be expansionist, but when the economy is overheating monetary policy will be contractionary. The setting of interest rates forms part of monetary policy.

Monetary Union – a group of countries that use a common currency and have aligned monetary policies, aiming to facilitate trade, enhance economic stability, and reduce transaction costs among the member states.

Money – any intangible or tangible thing that represents a unit of value and can be used as a medium to exchange goods. Money has been around for thousands of years.

Money Illusion – the erroneous notion that many people have that a unit of money does not decrease in value over time, which it does because of inflation.

Money Laundering – the process of turning ‘dirty’ money into ‘clean money’. The funds were obtained from illegal activities. The criminals need to launder their proceeds in order to be able to use them openly and place them properly in the financial system.

Moneylender – an individual or organization that lends money, usually at very high interest rates and outside the official banking system.

Money Markets – places where money and various types of extremely liquid assets – money market instruments – are lent and borrowed between a few hours and just over a year. In the money markets, money managers, retail investors and banks can make short-term investments, effectively lending money to governments, broker-dealers, banks, and non-financial corporations. Together with capital markets, money markets make up the financial market and provide liquidity for the global financial system.

Money Order – a financial instrument that allows the payee to receive a certain amount of cash on demand – considered as safer than a check.

Money Supply – also known as money stock, refers to the amount of monetary assets that an economy has access to at a certain period of time. It is measured by monitoring currency in circulation and demand deposits.

Monopoly – a market where there is just one producer/supplier of a product or service; there is no competition. The monopolist controls the price and it is either extremely difficult or impossible for any other entity to enter the market.

Monopsony – a situation where a market has just one buyer, or one buyer dominates that sector. In a monopsony there are usually many suppliers, and they all exist at the mercy of the buyer, who can dictate terms, prices, delivery dates, product specifications, etc. A monopsonist may be a buyer of products or services, or an employer. For example, in an isolated town, a large company, organization or entity may employ most of the workers in the area.

Morale – the collective emotional and mental condition of a group as it relates to discipline, confidence, and motivation to perform tasks.

Mortgage – a loan to a purchaser of real estate that is secured on the property that is being bought. A mortgage could also be provided for any other purpose, when the borrower already owns a property and uses it as security.

Mortgage-Backed Securities – these are bonds that are backed by either a mortgage or a collection of mortgages (mortgage pool). The borrower is essentially paying the bondholder through his or her monthly installments.

Mortgage Bond – this is a bond in which the issuer has granted the bondholders a lien against the pledged assets (property). If the borrower defaults, the bondholder can resell the property.

Mortgage Protection Insurance – also known as mortgage payment protection insurance, covers the policyholder if he or she is unable to meet payments due to accident, sickness or unemployment. Policy prices vary considerably, so consumers are advised to shop around.

Mortgage Rate – the interest rate on a mortgage. A borrower’s monthly payments on a mortgage depends on the size of the loan and the mortgage rate.

Motivation – in business, it is about finding ways to encourage staff so that they can give their best. A workforce that is motivated cares about the success of the business and works more effectively. Motivation is all about why a person acts or behaves in a particular way – it is about enthusiasm.

MRO Items – or Maintenance, Repair, Operations Items are materials and products that companies buy that do not end up as part of their finished prodcuts. They are products and materials a company needs for its operations, such as goggles for factory workers.

Multinational Company – a company that has business, staff and premises in more than one country. They typically have a centralized head office from which global activities are managed. Also called a multinational corporation or transnational corporation.

Multiplier – also known as the ‘multiplier effect’, is a calculation that tells us how big an initial expenditure can eventually become when it has worked its way through the economy. For example, the government spends an additional $5 billion on education, schools consequently hire more teachers, the new teachers buy goods in shops and eat out in restaurants, shops and restaurants consequently hire more workers, their workers spend on … ,etc. Multiplier effect theory was created by John Maynard Keynes during the Great Depression of the 1930s.

Mutual Fund – a company that gathers the money from several investors – pools it – and invests it in securities such as stocks, bonds and short-term debt. Some mutual funds are huge, with several hundreds of thousands of investors. People buy shares in the mutual fund, i.e. they become owners of a proportion of the fund. Mutual funds in the United Kingdom are known as unit trusts.

Mutual Savings Bank – a financial institution that belongs to its depositors. It has no shareholders, i.e. no equity capital. They were first founded two hundred years ago to encourage low-income workers to save.