Investor Glossary-money marketInvestor Glossary-money marketInvestor Glossary-money marketInvestor Glossary-money marketInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Money Market

The HTML to link to this page
 

The money market is the market for short-term financial instruments. Money market instruments include Treasury bills, bankers acceptances, commercial paper, Federal funds, municipal notes, and other securities. The common characteristic of money market instruments is that they all have maturities of one year or less, and often 30 days or less. The money market does not have one fixed physical location. Rather, trading in money market instruments takes place in large financial centers, like New York and London. Companies and investors often use money market securities as temporary "parking places" for storing cash. While the returns on money market instruments are relatively low, they are among the safest of investments. Indeed, most money market securities are considered cash equivalents and are included with cash on a company's balance sheet. A money market fund is a mutual fund that invests in money market securities. While money market instruments already have low risk, the diversity of instruments in a money market fund provides even greater safety. And although money market funds are not Federally insured, they are highly regulated by the SEC.



Rate this money market definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, balance sheet, current ratio, implied volatility, ex-dividend, APR, open position, reverse mortgage, deferred revenue, real GDP, wholly-owned subsidiary, inflation, Zero Cost Collar, Key Rate Duration, average price per share, VIX, limit order, labor relations, command economy, quality assurance, LIBOR, debt service coverage, FTSE, phantom income, 1031 exchange, ex-dividend date, per diem, stock split, stock market close, minority interest, cancelled check, covered put, dividends payable, 1035 exchange, class C shares, diluted share, required rate of return, margin rate, retained earnings, EBITDA, FICO score, 144a, deferred tax, risk management, option premium, annual return, 401a, irrevocable trust, liquidity ratio


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use