Difference between revisions of "Money market"
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| − | [[Money market]] is a financial market for debt securities | + | [[Money market]] is a financial market for short-term debt securities. ''Short-term'' assumes that their maturities are less than one year. Debt securities may include short-term certificate of deposit|certificates of deposit]] ([[CD]]s), municipal notes, or [[U.S. Treasury bill|U.S. Treasury bill]]s. |
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| + | At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers. | ||
Revision as of 08:22, 4 November 2019
Money market is a financial market for short-term debt securities. Short-term assumes that their maturities are less than one year. Debt securities may include short-term certificate of deposit|certificates of deposit]] (CDs), municipal notes, or U.S. Treasury bills.
At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Money market. A financial market for debt securities with maturities of less than 1 year (short-term). The New York money market is the world's largest.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Money markets. The financial markets in which funds are borrowed or loaned for short periods (less than one year).
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
