Money Market: Introduction

Definition     –     Money Markets

Whenever a bear market comes along, investors realize (yet again!) that the stock market is a risky place for their savings. It’s a fact we tend to forget while enjoying the returns of a bull market! Unfortunately, this is part of the risk-return tradeoff. To get higher returns, you have to take on a higher level of risk. For many investors, a volatile market is too much to stomach – the money market offers an alternative to these higher-risk investments.

The money market is better known as a place for large institutions and government to manage their short-term cash needs. However, individual investors have access to the market through a variety of different securities. In this tutorial, we’ll cover various types of money market securities and how they can work in your portfolio.

Read more: http://www.investopedia.com/university/moneymarket/#ixzz1yn7RHv3c

Source: Investopedia



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