Money Market Instruments Understanding Capital Market and Money Market Securities Lesson Summary Frequently Asked Questions What is the capital market and its functions? The capital market is based on the trading of capital assets. The main function of this market is to facilitate the exchange of ...
Financial instruments are securities that both large and small investors can use to gain exposure to the financial markets. Some of these securities are common, such as equity or stock investments, as well as bonds or debt securities. Small investors and institutional investors, including mutual fun...
Seasoned mutual fund investors are very familiar with money market funds (MMFs). Developed in the 1970s, MMFs give investors the option of purchasing a pool of securities that typically generate higher returns than interest-bearing bank accounts. The size, scope, and availability of MMFs have gro...
Money funds(ormoney market funds,money market mutual funds) aremutual fundsthat invest in short-term debt instruments. Explanation Money market funds, also known as principal stability funds, seek to limit exposure to losses due to credit, market, and liquidity risks. Money market funds in the ...
Summary This chapter describes many of the different types of fixed-rate, floating-rate and index-linked bonds and short-term money market instruments that have been issued together with some other financial instruments that work in a similar way. A common embedded bond option is the ability of...
financial instrumentsSummary This chapter describes many of the different types of fixed-rate, floating-rate and index-linked bonds and short-term money market instruments that have been issued together with some other financial instruments that work in a similar way. A common embedded bond option ...
In this article we are focusing on the behavior of different types of market players, who are trading in the currency market using derivative instruments such as futures or options.
How do you choose which money market fund is right for you? Here are some aspects you need to check: • Asset Composition Money market funds can comprise of a mixed portfolio, made up of a variety of assets. The right mixture of money market instruments helps you or thefund managerto ...
Securities and Exchange Commission (SEC) rules dictate the fund portfolio must maintain aweighted average maturity(WAM) of 60 days or less.Just like othermutual funds, money market funds issue redeemable units (shares) to investors and must follow guidelines set out by the SEC. All the attribute...
For example, a regular bank savings account is a money equivalent. The account holder can convert those savings to cash at any time and instantly. M2 M2 includes M1 plus short-termtime depositsin banks and money market funds. Generally, terms of less than a year are considered short-term....