Market capitalisation
The value of a company obtained by multiplying the number of its issued shares by their market price.

Market maker
A financial intermediary who offers to buy and sell securities disclosing such offers throughout the mandatory quote period.

MBO (Management buyout)
Leverage buyout whereby the acquiring group is led by the firm's management.

Mark-to-market
Adjustment of the book value or collateral value of a security to reflect current market value.

Market risk
Risk of loss due to unfavourable price changes on the financial markets.

Mergers
In a merger, two companies come together to become one. The shareholders of the merging companies often become joint owners of the combined entity.

Mib bancario
Stock exchange index of the banks listed on the Milan Stock Exchange.

Microcredit
Programmes granting small, easy-term loans to enterprises which are usually excluded from the banking circuits and aimed at job creation and entrepreneurship.

MSCI Europe Index (Morgan Stanley and Capital International Europe Index)
Index designed to measure market equity performance in Europe.

Mutual fund
A portfolio of stocks, bonds, or other securities administered by an investment company. Capital is contributed by smaller investors who buy shares in the mutual fund rather than the individual stocks and bonds in its portfolio.
There are two types of mutual funds: open and closed-end. Shares in closed-end funds, some of which are listed, are readily transferable in the open market and are bought and sold, like other stocks. These funds do not accept new contributions from investors, but only reinvest the return on the existing portfolio.
Open-end funds sell their own new shares to investors, stand ready to buy back their old shares, and are not listed on exchanges. Open-end funds are so called because their capitalisation is not fixed: they issue more shares according to demand.