Glossary of Financial Terms

M

Macroeconomics

The study of the economy as a whole.

· See Also · Microeconomics

Managing General Agent

Refers to a company that is licensed to have its employees sell insurance products. The regulatory and licensing requirements generally differ between provinces (for Canada) and states (for the United States).

The acronym MGA is increasingly being used to describe a "company of agents" in general and not necessarily (strictly) associated with selling insurance (e.g. wealth advisors that may be licensed to sell mutual funds or term deposits).

· See Also · Agent · Broker

Market Economy

An economic system where suppliers and consumers conduct business freely and where market prices are determined primarily by supply and demand.

Mezzanine Financing

This is the type of financing extended to a company when it is believed that company will go public in the short term.

· See Also · Bridge Financing

Microeconomics

The study of individuals and businesses as they relate to the economy.

· See Also · Macroeconomics

Minimum Payment

The least amount a borrower can repay at the time of their specified periodic repayment.

Monetary Policy

Policies put in place by a government that influence the economy.

Money Laundering

The movement of illegally obtained money through a legitimate system or business to make that money appear legitimate.

Mortgage

A loan secured by the value of the house and land.

Mutual Fund

A mutual fund is vehicle for individuals to invest their money into a pool of multiple stocks and/or bonds and have it professionally managed. Although there is an element of diversification in mutual funds, because multiple stocks and/or bonds are purchased into a pool, there is also (usually) a particular investment goal (e.g. growth, income, speculation on a particular market, etc.).

· See Also · Bond · Stocks · Canada Savings Bond · Canada Premium Bond

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