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The use of money market investing comes equipped with some inherent risks. These risks include: the chance of losing the principle or the original sum invested, losing any interest that is earned through inflation, and the possibility of having to keep adding more money to the account.

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What are the dangers of high yield money market trading?

Some danger of high yield money are: Credit risk, currency risk, duration risk, political risk and taxation adjustment risk. Reinvestment risk and market value risk.


What are some of the dangers of bond investing?

Buying bonds consists of loaning money, usually to an entity like a government. As governments tend to be fairly stable, this is a relatively low-risk investment. The greatest drawback to bonds may be their consistency; unlike other investments, they are unlikely to jump in value in response to large market fluctuations.


Why is investing your money risky?

Investing your money is risky because the value of investments can fluctuate due to market volatility, economic conditions, and unforeseen events. There is always the possibility of losing some or all of your initial investment, particularly in assets like stocks and cryptocurrencies. Additionally, factors such as poor management decisions or shifts in consumer preferences can adversely affect investment performance. Therefore, while investing can yield significant returns, it also involves inherent risks that investors must carefully consider.


Where can one find more information about stock market investing for beginners?

There are plenty of online sites that walk beginners through a series of investing lessons, helping them to gain a good grasp on the stock market. Some of the more popular ones include: Beginnersinvest, Investopedia, and Allpennystocks.


What are some characteristics of money market instruments?

please i'd like to know thecharacteristics of money market especially in Nigeria

Related Questions

What are some dangers of investing in money market mutual funds?

Money invested in money market mutual funds may not earn enough to keep up with the level of inflation. They are not usually government insured which means there is an element of risk.


What are some benefits to investing in bonds?

Some benefits of investing in bonds are you will receive your money, whether the company does bad or not in the market. Also, the payments will remain the same over time.


What books will provide you with a stock market investing 101 level of understanding?

Books stores are filled with books outlining the basics of stock market investing. Some of the most popularly purchased of these books include "Stock Investing for Dummies", "Stock Market 101 Simplified", and "Investing 101."


What are some alternatives to investing in the stock market?

Some alternatives to investing in the stock market incluse CDs, real estate, annuities, and bonds. Also, opening a savings account is a good option for some people.


What are the best money market rates in the state of Maine?

The rate of 1.40% percent seems to be typical for the state of Maine. I have heard of some people investing their money overseas to make a huge profit.


What are the dangers of high yield money market trading?

Some danger of high yield money are: Credit risk, currency risk, duration risk, political risk and taxation adjustment risk. Reinvestment risk and market value risk.


What are some of the dangers of bond investing?

Buying bonds consists of loaning money, usually to an entity like a government. As governments tend to be fairly stable, this is a relatively low-risk investment. The greatest drawback to bonds may be their consistency; unlike other investments, they are unlikely to jump in value in response to large market fluctuations.


What are some ways to invest money?

There are tons of ways you can invest money here are some websites to help you. money.msn.com/investing money.msn.com/ money.cnn.com/magazine/investing/smartest/


Is Comcast stock a good investment?

Not for you. If you're depending on anonymous strangers to recommend stocks, then you shouldn't be investing in individual stocks. Put your money in a low-cost total stock market index fund instead. I agree - if you really want to invest in individual stocks then you should spend some time learning the market yourself, rather than asking for advice on a non-specialist site. Perhaps follow the market without investing real money for a while, and then start investing - but only what you can afford - even experts get it wrong, and there is always a risk to the stock market.


Investing vs. Gambling?

Investing is an overused word. Throwing money into a mutual fund that you do not have the slightest clue about is hardly investing, and if the recent recession has taught us anything, it is that the word investing means more an investment of your time and attention than your money. The stock market is not right for some people, just like owning a business as an investment is not right for some people. Figure out your personality first, and what you enjoy doing over a long term period. That is where your money should go - where your attention naturally goes.


What are some ways in investing money?

Their are many ways of investing money to allow maximum growth. Money markets and Certificates of Deposit that yield high interest rates are very popular.


Where can one read information on getting started investing in the commodities market?

One can read information on investing in the commodities market from many different online sources. Some of the more reliable sources include Market Watch and Daily Finance.