Money Market

Dictionary Says

Definition of 'Money Market'

A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements (repos).
Investopedia Says

Investopedia explains 'Money Market'

The money market is used by a wide array of participants, from a company raising money by selling commercial paper into the market to an investor purchasing CDs as a safe place to park money in the short term. The money market is typically seen as a safe place to put money due the highly liquid nature of the securities and short maturities, but there are risks in the market that any investor needs to be aware of including the risk of default on securities such as commercial paper.

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Related Definitions

  1. Banker's Acceptance - BA

    A short-term ...
  2. Certificate Of Deposit - CD

    A savings ...
  3. Commercial Paper

    An unsecured, ...
  4. Eurodollar

    U.S.-dollar ...
  5. Broken Date

    A term used to ...
  6. Money Market Account

    A savings ...
  7. Money Market Fund

    An investment ...
  8. Treasury Bill - T-Bill

    A short-term ...
  9. Repurchase Agreement - Repo

    A form of ...
  10. U.S. Savings Bonds

    A U.S. ...

Articles Of Interest

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  2. Money Market Mutual Funds: A Better Savings Account

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  6. Microeconomics: Assumptions and Utility

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  8. Getting To Know The Money Market

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  9. Investing 101: A Tutorial For Beginner Investors

    Do want to invest, but don't know how to begin? We'll show you the building blocks you need to get started.
  10. Mutual Funds: Different Types Of Funds

    Find the fund to fit your investing style.

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