Money Market Basics Alexandria LA

An investment expert is invited to explain to you in detail what money market fund is and how it really work. Read this article and know more.

Local Companies

Alexander Cash Advance
(318) 443-2838
1710 Jackson St
Alexandria, LA
Tower Loan
(318) 445-9336
3320 Monroe St
Alexandria, LA
Cash In A Fla H
(318) 473-1060
4008 Jackson Street Ext
Alexandria, LA
Money To Go
(318) 442-7644
2845 N MacArthur Dr
Alexandria, LA
Advance America Cash Advance
(318) 445-7334
2071 N Mall Dr
Alexandria, LA
Money Tree Inc the
(318) 487-1900
4715 Lee St
Alexandria, LA
Payday Today
(318) 445-8688
27 MacArthur Dr
Alexandria, LA
Quick Cash
(318) 442-0011
3716 S MacArthur Dr
Alexandria, LA
Mr Money
(318) 442-6028
2914 S MacArthur Dr
Alexandria, LA
E-Z Fast Cash Inc
(318) 443-0800
1405 Metro Dr
Alexandria, LA

Provided by:

The moment you deposit money into an investment account, it starts to work for you. It doesn't earn interest, as in a typical bank account, but it doesn't just sit there either. Your cash is automatically "swept" into purchases of shares in something called a money market fund (sometimes known simply as a money fund).

Money Market Fund Explained

A money market fund is really a mutual fund. The money fund's manager invests the fund's assets in short-term bonds, providing a fairly safe and predictable return. Note that we said "fairly safe" - as with any investment, a money market is never completely risk-free, though they do come pretty close, since government bonds are the usual investment vehicle of choice for money market funds. Money market funds have failed in the past, though it's quite rare for that to occur.

How Money Markets Work

The price of a single share of a money market fund is always constant at $1.00 a share. How then, you might ask, can you make money by investing in a money market? Because the money market invests in bonds, those bonds do pay a yield, which creates income for the money fund shareholders. That income is computed daily as dividends; those dividends are credited to your account on a monthly basis. (Most people think of these dividends as "interest," and that's a fair comparison.) These dividends often add up to be a bit more than you get from a typical savings account at your bank, but the effective yield can vary from day to day and month to month.


Click here to read the rest of the article at YoungMoney.com.

Related Articles
- The Basics of Stock Market Investing Alexandria LA
Saving for retirement is commendable and is an essential component of stock market investing, particularly as you get older. If you are in your twenties, you hope that thirty or forty years into the future, that little retirement nest egg will have grown to provide for your comfortable old age.
- Stock Market Basics Alexandria LA
- Save Money Basics Alexandria LA
- A Forex Training Program Alexandria LA
- Basics Of Investing Alexandria LA
- Bond Investing Alexandria LA
- Money Market Accounts Alexandria LA
- How To Start In Forex Trading Alexandria LA
- The Basics Of Investing Alexandria LA
- Small Business Loan Basics Alexandria LA
Related Articles
- The Basics of Stock Market Investing Alexandria LA
Saving for retirement is commendable and is an essential component of stock market investing, particularly as you get older. If you are in your twenties, you hope that thirty or forty years into the future, that little retirement nest egg will have grown to provide for your comfortable old age.
- Stock Market Basics Alexandria LA
- Save Money Basics Alexandria LA
- A Forex Training Program Alexandria LA
- Basics Of Investing Alexandria LA
- Bond Investing Alexandria LA
- Money Market Accounts Alexandria LA
- How To Start In Forex Trading Alexandria LA
- The Basics Of Investing Alexandria LA
- Small Business Loan Basics Alexandria LA

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History