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). |
|
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. |
|
Related Definitions
Articles Of Interest
-
Exploring Non-Dollar Currencies For Forex Trading
Learn how investments in foreign currencies can diversify your portfolio. -
Money Market
Learn more about this segment of the financial market and how it can cater to your short-term investment needs. -
Money Market Mutual Funds: A Better Savings Account
An good alternative to the traditional savings account is the money market mutual fund. It's easy, safe and has better returns. -
The Pros And Cons Of Money Market Funds
Find out whether stocking your money in these accounts will stand up to the test of time. -
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. -
Reducing Risk With Options
If you want to use leverage to your advantage, you must know how many contracts to buy. -
The Money Market: A Look Back
Learn how past inflationary periods can predict future real rates of return for cash investments. -
Are eurodollars related to the currency called the euro?
Eurodollars have little to do with the official currency of the European Union, the euro (EUR). In 1999, the euro was implemented as the official currency of the European Union as a means to ...
Free Annual Reports