Money Market Fund

Money Market Fund: shares

$1 per share

Money Market Fund: Liquidity

Make deposits and withdrawals without penalty

Money Market Fund: minimum withdrawals

$500

Money Market Fund: Largest operating expense:

*Management & Advisory Fees*-impact yield

Money Market Funds Invest in:

1. T-Bills 2. CD's 3. Commercial Paper 4. Banker's Acceptance and Eurodollars *all have maturities of 12 months or less*

Money Market Fund: Dividends

1. credit *DAILY* 2. paid: *MONTHLY* 3. *FULLY TAXABLE* to investor 4. still pay tax on dividends that are reinvested

Money Market Fund

1. fund that is made up of securities 2. *SHORT TERM= safety* maturities of *12 months or less* 3. *most liquid mutual fund* 4. offers investor *liquidity & safety* 5. Dividends: *credit DAILY, paid out MONTHLY* 6. *no sales load charge* 7.minimum withdrawals:*$500* 8. shares: *$1 per shares* 9. Covered by: *PRIVATE INSURANCE* *not covered by Securities Investors Protection Corporation (SIPC)* - market crash of 1987

Securities Investors Protection Corporation

1. insurance for customers of brokerage firms in case the brokerage firm goes out of business 2. max coverage: $500,000 * did not cover money market funds in crash of 1987*

Money Market Security

1. security 2. maturity of *12 months or less* 3.$1 per share *protection from inflation*

Money Market Fund: Safety

securities are short-term