answersLogoWhite

0

Answer When an individual or his investment advisor invest money in a money market fund, he expects dividends on regular basis and the investment to yield a certain return (as of June 2008, it is less than 3%). The management of a money market fund, to be able to accomplish this return and pay themselves management fees, has to reinvest this money also. They usually invest them in commercial papers, bank CDs, etc, and since these investments are not risk free, it is possible that they eventually can get back only part of the money they originally invested, thus braking the buck. In such situation the individual may be getting back, for example, 80% on every dollar invested. Answer If a money-market fund gives investors less than a dollar-for-dollar return on their investment, that occurrence is known as "breaking the buck." Basically it means that you are getting a yield less than zero.

User Avatar

Wiki User

17y ago

What else can I help you with?

Related Questions

What does equity fund mean?

A stock fund or equity fund is a fund that invests in Equities more commonly known as stocks. Such funds are typically held either in stock or cash, as opposed to Bonds, notes, or other securities. This may be a mutual fund or exchange-traded fund. The objective of an equity fund is long-term growth through capital appreciation, although dividends and interest are also sources of revenue. Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.


What does it mean when someone says it will make you or break you?

You will be challenged and may or may not live up to it


What is Buck Showalter's birthday?

Buck Showalter was born on May 23, 1956.


When was Buck Showalter born?

Buck Showalter was born on May 23, 1956.


What are the release dates for Danger - 1950 A Buck Is a Buck 2-36?

Danger - 1950 A Buck Is a Buck 2-36 was released on: USA: 20 May 1952


When was Sibyl Buck born?

Sibyl Buck was born on May 27, 1972, in Versailles, France.


What does buck eyed mean?

"Buck eyed" typically refers to someone who has large, prominent eyes, similar to those of a deer (buck). The term can also imply a sense of innocence or naivety. In some contexts, it may be used humorously or affectionately to describe someone whose eyes stand out in a distinctive way.


When was Buck Houghton born?

Buck Houghton was born on May 4, 1915, in Denver, Colorado, USA.


May you cancel your mutual fund application?

Yes you can. But the fund house may charge you an exit load if your purchase request has been processed.


How old is Buck Showalter?

William "Buck" Showalter is 61 years old (birthdate: May 23, 1956).


When did Buck Robley die?

Buck Robley died on May 28, 2013, in Little Rock, Arkansas, USA.


When was Ilse Buck born?

Ilse Buck was born on May 11, 1923, in Linz, Upper Austria, Austria.