An individual or entity that simultaneously provides both a bid and offer price to help ensure liquidity for trading in a particular security.
Term of the Minute
- Management expense ratio (MER)
The management expense ratio (MER) shows the percentage of the fund’s daily average net assets that was paid in management fees and other expenses during the year. The MER is shown at an annualized rate if the financial year is less than 12 months. The method of calculating the MER of mutual funds was changed by securities regulators on February 1, 2000. Some expenses, such as taxes and interest that were previously excluded, are now included in the calculation.