Money Market
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). |
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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.The money market is different from the capital market. The differences can be read in the article Financial Markets: Capital Vs. Money Market and Getting to Know the Money Market. |
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Articles Of Interest
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Introduction To Commercial Paper
Commercial paper is a short-term instrument that can be a viable alternative for retail fixed-income investors looking for a better rate of return on their money. -
Banker's Acceptance 101
A banker's acceptance, a common way of financing international trade activity, provides a relatively safe, short-term vehicle for investors. An acceptance is a negotiable time draft that a bank ... -
Financial Markets: Capital Vs. Money Markets
Two commonly used components of the financial market are money markets and capital markets. Find out the similarities and differences between them. -
Money Market
Learn more about this segment of the financial market and how it can cater to your short-term investment needs. -
Get A Short-Term Advantage In The Money Market
This investment vehicle is often the perfect stop-gap measure for growing your money. -
Getting To Know The Money Market
If you need liquidity and safety on a sum of money, don't forgo potential interest by keeping the funds as cash. -
Do Money-Market Funds Pay?
This investment provides security, but its returns may not be adequate for long-term investors. -
The International Money Market
Banks, corporations, traders and speculators all use the IMM to borrow, lend, trade, profit, finance, speculate and hedge risks. -
The Money Market: A Look Back
Learn how past inflationary periods can predict future real rates of return for cash investments. -
The Money Market
If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
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