Money Market Mutual Fund
Definition of "Money market mutual fund"
Fund that concentrates primarily on short-term government securities, certificates of deposit with maturities less than one year, and high-quality interest-bearing corporate debt. The fund is a pool of money from many investors from which interest is paid to these investors on the income earned by that pool of money. Income and yield fluctuate on a daily basis, but each share in the mutual fund maintains a constant value of $1, resulting in no capital gains or losses. These funds are ideal for short-term needs. Since these funds invest in financial instruments whose maturities are very short, reinvesting is on a continuous basis. Thus, as interest rates rise or fall, the funds' yields will correspond accordingly.
Popular Insurance Terms
One of the major underwriting organizations for insurance company pools insuring commercial aircraft liability exposure. ...
Process in life insurance by which an applicant who is uninsurable, or is a greater than average risk, seeks to obtain a policy from a company at a standard premium rate. Life insurance ...
Insurance against interruption of supply of goods and services. If firm A depends on firm B for its supply of goods and services, an interruption caused by damage or destruction to B can ...
Security sold by the issuer of the security directly to the purchasing financial institution without the inclusion of the investment banker in this process. Insurance companies are frequent ...
Very junior issues of debt, according to explicit statements in the indenture, which rank after other unsecured debt. ...
Rate of increase in asset value. ...
Frequency of illness, sickness, and diseases contracted. ...
Rating system under which a specific premium rate, rather than a manual or class rate, is assigned to each unit of exposure. ...
Same as term Burglary Insurance: coverage against loss as the result of a burglary. Found as part of the commercial package policy that has generally replaced the special multiperil ...
Have a question or comment?
We're here to help.