M

Managed exit - The point at which management and other investors enjoy a return on their investment, by selling the business either on the stock market, to a competitor, or to another institution such as a VCT. A Managed exit will be initiated according to a careful strategic plan which is often compiled with professional advice.

Management Accounts - Accounts which are prepared for use when managing the business.

Market Capitalisation - The value of a company measured by the total stock market price of its shares, calculated by multiplying the number of shares by the current market price of a share.

Micropal Star Ratings - Micropal is an independent Mutual Fund analyst which monitors all the UK's unit trust and OEICs and awards stars on a scale of 0-5, with the highest scores being awarded to the best performing funds.

Monetary Policy - Influencing an economy through control of the money supply.

Money Purchase Scheme - Also known as Defined Contribution Scheme. A scheme where the amount of a member's retirement benefits depends on the contributions paid into the scheme in respect of the member. The rate of the contributions is decided by the employer.

Mutual company - A company which has no shareholders but is owned instead by its with-profits policyholders.

Mutual Fund - An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets in accordance with a stated set of objectives. Shares are issued and redeemed on demand.

N

NASDAQ - Index of the leading technology stocks in the USA.

National Insurance - Payments made out of earnings by employees, employers and the self-employed to the Government that entitle you to a state pension and other benefits.

National Insurance Rebate - The amount by which employers' and employees' National Insurance contributions are reduced for employees who are contracted out of SERPS by virtue of membership of an occupational pension scheme. Alternatively, it is the payment made by the Department of Social Security as minimum contributions to a personal pension scheme.

Negative Equity - This is when the market value of your house is less than the amount outstanding on your mortgage.

Net Yield - The return on an investment after tax has been deducted.

O

Occupational Pension Scheme - A legal contract set up by an employer to provide pensions and/or other benefits for one or more employees on retirement, death or leaving pensionable service.

OEIC - Open Ended Investment Company - Managed funds which hold a portfolio of investments which you can buy into. They issue shares instead of units and normally quote a single price.

Offer Price - The price at which you buy units from a unit trust manager.

Offshore Funds - Funds based outside the UK for tax reasons.

OMO - Open Market Option - Your right at retirement to buy an annuity from a provider other than the one who has administered your pension fund.

OPAS - The Occupational Pensions Advisory Service, voluntary organisation which advises on problems with any type of pension scheme other than state schemes.

OPRA - The Occupational Pensions Regulatory Authority, body with wide ranging powers set up to regulate the occupational pensions industry

Option - In investment terms, a contract giving the right to buy or sell commodities, currencies or shares at a fixed date in the future at a fixed price. In pension terms, the choice of how to take your fund (e.g. lump sum and pension or pension) and the right at retirement to buy an annuity from a provider other than the one who has administered your pension fund.