Money Market

Money market

Money markets are for borrowing and lending money for three years or less. The securities in a money market can be U.S.government bonds, Treasury bills and commercial paper from banks and companies.

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money market

The market for trading short-term, low-risk securities such as commercial paper, U.S. Treasury bills, bankers' acceptances, and negotiable certificates of deposit. The market is made up of dealers in these securities who are linked by electronic communications.

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Money market. The money market isn't a place. It's the continual buying and selling of short-term liquid investments.

Those investments include Treasury bills, certificates of deposit (CDs), commercial paper, and other debt issued by corporations and governments. These investments are also known as money market instruments.

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Money Market

What Does Money Market Mean?

The segment of the financial markets in which highly liquid shortterm assets trade; the money market is used by participants as a means to borrow and lend on a short-term basis from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), banker's 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 to an individual investor buying CDs at a bank. The money market typically is seen as a safe place to put money as a result of the highly liquid nature of the securities and short maturities, but there are risks, including the risk of default on securities such as commercial paper.

Related Terms:
• Banker's Acceptance—BA
• Certificate of Deposit—CD
• Commercial Paper
• Liquidity
• Money Market Account