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You are Here : Home > Investor Education > Glossary

Glossary to investment terminology : M

 
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Majority Shareholder
This is a shareholder or group of shareholders who control more than half of a company's shares.

Manipulation (Price Manipulation)
This is the act of artificially rising or lowering the price of shares by creating an appearance of acting buying and selling. It is illegal.

Margin Account
This is an account in which the stockbroker lends the client money with which to purchase shares. It allows the investor to buy shares with money that he/she does not have by borrowing money from the stockbroker.

Market Capitalization
Market capitalization is the total market value of a company calculated by multiplying the number of shares by the current market price per share. Example; if a company has 10 million shares, and the current market price per share is KES 10.00 then the market capitalization for that company is KES 100 million.

Market Order
This is an order to buy or sell a stock immediately at the best possible price. It is sometimes referred to as an unrestricted order.

Market Overhang
This is a market situation where the sale of an IPO or stock is lessened because buyers are expecting its price to fall, and are therefore holding back from purchasing the stock, undecided whether to buy now or later.

Market Price
The last reported price at which a share was sold at the stock exchange. It is also referred to as the market value.

Market Share
This is the percentage of an industry's total sales that is earned by a particular company over a specified time period. It is a good indicator of the size of a company in comparison to its competitors.

Matching Orders
This is an illegal practice that involves simultaneously entering identical buy and sell orders for a stock so as to give the impression of active trading.

Material Information
This is information about a company that has not yet been made public but which would have an impact on the company's share price once released. Examples include expansion plans, financial results or takeover bids.

Maturity Date
The date on which the principal amount on a debt e.g. bond, is due and is repaid to the investor. The maturity date depends on the terms of the debt.

Member
This is short for €˜member of the Nairobi Stock Exchange' and refers to the stockbrokers holding membership at the exchange. Membership is mandatory in order to fill in trades for clients on the exchange. It is also referred to as owning a seat at the NSE.

Merger
This is when two or more companies mutually and amicably come together to form a new company for increased overall efficiency. The shareholders of the merged companies are offered equivalent holdings in the new company and retain their powers, rights and benefits in the new firm.

Minority Interest
This is when an individual or company owns a significant but non-controlling shareholding of less than 50% of a company's shares. It is also known as minority ownership.

Mixed Market
This is when the stock market does not have a clear trend, with about the same number of advancing and declining stocks.

Money Market
The money market is a part of the capital market that is established to buy and sell short term financial obligations. Money market securities are generally very safe investments which return a relatively low interest rate and include short term treasury bills and certificates of deposit.

Most Active
The most active shares at the stock exchange are the ones that had the highest volume traded in a given period, usually a single trading day.