Investor Glossary-treasury billInvestor Glossary-treasury billInvestor Glossary-treasury billInvestor Glossary-treasury billInsightful 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

Treasury Bill

The HTML to link to this page
 

To help finance federal spending, the Treasury sells short term debt securities known as a Treasury bill. A private investor can invest in a Treasury bill with maturities ranging from 90 to 360 days. A Treasury bill tends to be sold at weekly auctions open to public participation. A Treasury bill can also be purchased directly from a Federal Reserve Bank in denominations starting at $10,000 and rising in increments of $5,000.

A Treasury bill does not pay interest. They are sold at a discount, with the holder receiving full face value upon maturity. The larger the discount on a Treasury bill, the higher the rate of return. A $10,000 Treasury bill purchased for $9600 and maturing in 360 days, for example, carries a return of approximately four percent return.



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


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