Research Report Money Market
he Money market researched and how it operates
The money market developed because there are parties that had surplus funds, while others needed cash. The money market is a sector of the financial market in which financial instruments with high liquidity and very short maturities are traded. Money market investments are also called cash investments. Money market trades can happen overnight, in a couple of short months or in less than a year. Money market trades in financial instruments commonly called "paper”, there are various instruments that exist such as Treasury bills, commercial paper, bankers ' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage, and asset-backed securities. This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity.
These instruments are very liquid and considered extraordinarily safe. Because they are extremely conservative, money market securities offer significantly lower returns than most other securities.
One of the main differences between the money market and the stock market is that most money market securities trade in very high denominations. This limits access for the individual investor. Furthermore, the money market is a dealer market, which means that firms buy and sell securities in their own accounts, at their own risk. Deals are transacted over the phone or through electronic systems.
The money market is better known as a place for large institutions and government to manage their short-term cash needs such as raising funds, helping to implement monetary policy, determining short-term interest rates. However, individual investors have access to the market through a variety of different securities and the easiest way for us to gain access to the money market is with money market mutual funds, or sometimes through a money market bank account. These accounts and funds pool together the assets of
The money market developed because there are parties that had surplus funds, while others needed cash. The money market is a sector of the financial market in which financial instruments with high liquidity and very short maturities are traded. Money market investments are also called cash investments. Money market trades can happen overnight, in a couple of short months or in less than a year. Money market trades in financial instruments commonly called "paper”, there are various instruments that exist such as Treasury bills, commercial paper, bankers ' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage, and asset-backed securities. This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity.
These instruments are very liquid and considered extraordinarily safe. Because they are extremely conservative, money market securities offer significantly lower returns than most other securities.
One of the main differences between the money market and the stock market is that most money market securities trade in very high denominations. This limits access for the individual investor. Furthermore, the money market is a dealer market, which means that firms buy and sell securities in their own accounts, at their own risk. Deals are transacted over the phone or through electronic systems.
The money market is better known as a place for large institutions and government to manage their short-term cash needs such as raising funds, helping to implement monetary policy, determining short-term interest rates. However, individual investors have access to the market through a variety of different securities and the easiest way for us to gain access to the money market is with money market mutual funds, or sometimes through a money market bank account. These accounts and funds pool together the assets of
References: Wiki Pedia - Frank J. Fabozzi, Steve V. Mann, Moorad Choudhry, The Global Money Markets, Wiley Finance, Wiley & Sons (2002), ISBN 0-471-22093-0, Money Market, Investopedia. Foreign Trade and the Money Market, Felix Schuster, 1903. Bill of Exchange, Encyclopaedia Britannica, 1911. Money Market and Money Market Instruments, Functions and importance of Money Market, Discount Instrument, riskglossary.com, accessed 2012-05-14. http://www.investopedia.com/terms/m/moneymarket.asp www.moneymarket.com.au http://www.rba.gov.au/publications/bulletin/2009/jun/2.html http://www.youtube.com/user/lostmy1?feature=watch http://www.youtube.com/watch?v=LAKbrrHNkSA http://www.youtube.com/watch?v=P_bqDgkZmuY http://www.fxkeys.com/what-is-money-market/ http://www.stanlib.com/Individuals/knowledgecentre/Pages/Moneymarketandmoneymarketinstruments.aspx http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rep324-published-20-December-2012.pdf/$file/rep324-published-20-December-2012.pdf