The Raiz-opaedia of financial language (M & N)


Welcome again to Raiz-opaedia! If you’re new, this is the explanation of complicated investment and financial words that you might have heard somewhere. 

It’s valuable to have knowledge as the foundation, while you get familiar with your investment journey – that is full of emotion!

In case you want to revisit parts 1-3, here are the links:  

Ready? Let’s continue for the next alphabets – M and N! 


Mergers and Acquisitions (M&A) 

When two or more separate entities combine forces. Examples;  

    • Celcom Axiata Bhd + Digi.Com Bhd = Celcom Digi Bhd  
    • AmBank Group bought 100% MBf Cards Sdn Bhd  
    • SapuraCrest Petroleum Bhd + Kencana Petroleum Bhd = SapuraKencana Petroleum Bhd 

This could happen in many ways; 

    • Some are direct competitors like Celcom and Digi. 
    • A company and its supplier/customer along its supply chain.

Why did companies decide to merge? It could be to achieve higher growth and market share, diversification to reduce loss, and tax benefits. 


Monetary Policy 

Policy which the Central Bank control the interest rate and money supply to make sure the sustainability of economic growth. 

As you can see during this COVID-19 pandemic, Bank Negara has lowered the Overnight Policy Rate (OPR) to encourage more borrowing and spending. And vice versa. 

The goal is to keep the economy in the best condition – not too cold or hot, like your teh tarik.


Net Asset Value (NAV) 

It represents the price per unit of a fund, calculated on each business day.


Net Worth 

The value of all your assets minus all your liabilities, or simply your debts. It helps you in understanding your current financial situation to better plan your financial goals. It provides a measure of your progress in accumulating financial wealth and the progress you’re making toward paying off your debt. 

Assets – when you add up the value of everything you own (such as your house and the cash in your bank account). 


    • Ali has RM10,200 in ASB. 
    • Ali has a house valued at RM360,000. 
    • Ali has a 3-year old Myvi car, and if he were to sell it, he will get RM20,000. 
    • So, Ali’s total assets are RM390,200. 

Liabilities – when you add up the value of all your debts (such as your house loan, car loan or credit card balances). 


    • Ali’s house still has bank loan balance of RM200,000 to settle. 
    • Ali has a 3-year old Myvi car that still has bank loan balance of RM34,000 to settle. 
    • Ali has RM2,000 credit card balance. 
    • So, Ali’s total liabilities are RM236,000. 

Net Worth = Assets – Liabilities. 

So, Ali’s net worth is RM390,200RM236,000 = +RM154,200. 

Theoretically, your net worth is the cash you would have if you were to sell everything you own and paid off all your debts. A negative net worth is an indication that you have more debts than your assets. 


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Important Information 

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. 

The information on this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. 

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.