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The primary purpose of a money market account is to provide a safe haven for cash with a minimal chance of fluctuation in the value per share. Since common stocks can at times be very volatile, a money market fund is not allowed to invest in common stocks. Money market funds typically hold short term corporate and government debt obligations with very high credit ratings and a maturity date of less than a year.
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∙ 9y ago
Wiki User
∙ 12y agocapital market
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What is the riskiest capital market security preferred stock or common stock?
Sex
What are securities with maturities of one year or less classified as?
Money market instruments are securities with maturities of one year or less. A common stock is an example of something that is not a money market security.
What is buying on margin?
its borrowing money to invest in the Stock Market
What does it mean that a stock option is in the money?
An in-the-money option is one that makes financial sense to exercise. In-the-money puts are ones where the security's open-market price is lower than the option's strike price. In-the-money calls are ones where the security's open-market price is higher than the option's strike price.
People who invest in the stock market will automatically make money?
No. Stock Market investors can make money as well as lose it. There is no guarantee that you will make money in the stock market
What is a type of security?
common stock
What is a stock symbol?
a unique symbol given to a business of security purposes for stock market
Is a preferred stock a money market or a capital market?
capital market
What are the three major categories of funds?
The three major categories of funds are equity funds (investing in stocks), fixed-income funds (investing in bonds), and money market funds (investing in short-term, low-risk securities).
How can you lose money in the stock market?
In a bear market your stock value goes Ka-flop.
Who regulates the stock market?
the Security Exchange Commission (SEC)
What is the disadvantage of buying stock?
You might lose money in the stock market.
