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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use