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Managed code is a scheme applied by Microsoft to some high-level programming languages in order to have their execution managed by the .Net Framework Common Language Runtime.
The core of this is a contract of cooperation between the runtime and the natively executing code which states that the runtime may stop an executing CPU in order for it to retrieve the information which is specific to that current address the CPU is executing. This is to ensure type safety, array bound and index checking, garbage collection and exception handling.