Glossary
Management Company
A joint-stock company licensed under the Public Offering of Securities Act that manages contractual funds and investment companies, providing management services for individual and collective investment portfolios with varying investment goals and risk profiles. The management company invests collected funds according to an approved investment policy, ensuring professional management, risk control, and reporting to investors and supervisory authorities. Its activities are supervised by the Financial Supervision Commission.
Man-in-the-Middle Attack (MITM)
A cyberattack, usually over an unsecured Wi-Fi network, in which the perpetrator secretly relays or alters the communication between two parties who believe they are communicating directly with each other.
Margin
In leveraged (or margin) trading, it is the amount of capital that an investor must provide to open or maintain a position that is partially financed with borrowed funds provided by a broker.
Market Risk
The risk of losses arising from unfavourable changes in the market prices of financial assets such as stocks, bonds, currencies, commodities, and other investment instruments.
Markup - glossary for children
The extra amount added to a price so a shop can make a profit.
Maturity Date
The date on which a financial obligation becomes due — for example, a loan instalment, lease payment, insurance premium, or other financial liability. It is the final date by which the debtor must fulfil the contractual obligation to avoid delay, penalties, or other adverse consequences. Contracts may specify one or several maturity dates depending on the payment schedule.
Merchant / Trader
A natural or legal person engaged in commercial activity for profit, offering goods or services on the market and conducting transactions under the Commercial Act. This includes buying and selling goods, production, brokerage, financial and insurance operations, services, real estate transactions, leasing, and intellectual property. A merchant must register according to the law, carry out commercial transactions independently and continuously, and bear legal responsibility for their activities.
Minimum Wage - glossary for children
The lowest salary that the law requires employers to pay for a full working day.
Minimum Wage (MW)
The lowest legally permissible monthly remuneration that an employer is obliged to pay for a full working day (8 hours) under normal working conditions in Bulgaria. It is regulated by the Labour Code and the State Budget Act of the Republic of Bulgaria for the respective year. The minimum wage is set by a Council of Ministers decree based on economic indicators (GDP, labour productivity), social criteria (living costs, poverty, average wage), and consultations with trade unions and employers’ organizations. The MW is state-regulated and applies to all employees under an employment contract, including in the private sector. It is expressed as a monthly amount for a full working month, with a corresponding rate for hourly work. The MW serves as a basis for calculating social security contributions, benefits, tax reliefs, and the amounts of certain administrative fines and fees.
Misleading Commercial Practice
An unfair commercial practice that contains false information and misleads or is likely to mislead the average consumer in some way. A list of commercial practices that are in all cases considered misleading is set out in the Consumer Protection Act.
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