| Money markets are the global financing markets | | | | anytime they like without being penalized. The |
| that offer short term financing to the investment | | | | investments also come with a low risk factor, |
| world. This investments refer to an account held | | | | which is not common to a majority of |
| by an investor either individually or as a | | | | investments. The probability of one losing their |
| corporation, for the purpose of short term cash | | | | money is relatively low. However, the bigger risk |
| obligations. This ensure that there is regular in and | | | | is due to the fact that the investments are not |
| out flow of cash when and if need be. | | | | insured and hence, an investor may lose his |
| The purpose of holding the account is to ensure | | | | money if the company he has invested with goes |
| maximum safety for the principal that has been | | | | bankrupt. |
| invested in the many different securities in the | | | | Other benefits are drawn from the fact that |
| stock market. In addition, the investment ensures | | | | most of the money raised through stocks and |
| a steady return on the principal amount. The | | | | bonds are directed into the money market funds |
| money market investment brings with it a | | | | and as such, interest and dividends are almost |
| number of advantages and benefits as well. To | | | | guaranteed for the investors in these |
| begin with, it has the potential to make a modest | | | | investments. Since they are among the most |
| return of two to five percent per year, as a | | | | significant in finance, they tend to attract a lot of |
| result of the keen investment strategies applied. | | | | investors and they have thus become the most |
| Since they are open ended, they present an | | | | widely owned securities. |
| investor with the opportunity to withdraw or join | | | | |