Money Market Basics Dalton GA

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

Wachovia
(706) 275-8272
1305 W Walnut Ave
Dalton, GA
National Title Pawn
(706) 279-1163
2104 Cleveland Hwy
Dalton, GA
1st Franklin Financial
(706) 226-7417
2705 Airport Rd Ste 110
Dalton, GA
Bank of America
(706) 226-3000
300 S Thornton Ave
Dalton, GA
Security Finance 11-1406
(706) 278-1005
415 E Walnut Ave
Dalton, GA
Bank of America
(706) 226-3000
300 S Thornton Ave
Dalton, GA
Wachovia
(706) 275-8378
2114 Cleveland Hwy
Dalton, GA
Bank of America
(706) 226-6053
300 S Thornton Ave
Dalton, GA
Georgia Auto Pawn
(706) 278-6560
313 N Glenwood Ave
Dalton, GA
Cash Loans
(706) 278-7600
304 Springdale Rd Ste 2
Dalton, GA

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.

Featured Local Company

Security One Lending

770-334-8782
41 Timber Ridge Drive
Cartersville, GA
reversemortgagecartersville.com


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