Money Market Yield
The interest rate earned by investing in securities with high liquidity and maturities of less than one year such as negotiable certificates of deposit, U.S. Treasury bills and municipal notes. Money market yield is calculated by taking the holding period yield and multiplying it by a 360-day bank year divided by days to maturity. It can also be calculated using bank discount yield.
Also known as "CD-equivalent yield".
To earn a money market yield, it is necessary to have a money market account. Banks offer money market accounts because they need to borrow funds on a short-term basis to meet reserve requires and to participate in interbank lending. The money market yield will be lower than the yield on stocks and bonds because of the low risk associated with money market investments.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
money market yield — A bond quotation convention based on a 360 day year and semiannual coupons. Bloomberg Financial Dictionary See: bond equivalent yield. Bloomberg Financial Dictionary * * * The yield of a security expressed under the money market daycount… … Financial and business terms
Money market fund — This article is about the type of mutual fund. For the type of bank deposit account, see Money market account. A money market fund (also known as money market mutual fund) is an open ended mutual fund that invests in short term debt securities… … Wikipedia
Money market in India — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
money market — the short term trade in money, as in the sale and purchase of bonds and certificates. [1925 30] * * * Set of institutions, conventions, and practices whose aim is to facilitate the lending and borrowing of money on a short term basis. The money… … Universalium
insured money market account — /ɪnˌʃυəd mʌni ˌmɑ:kɪt əˌkaυnt/ noun a high yield account, in which the investor has to deposit a certain minimum sum, which is insured by the provider against capital loss. Abbreviation IMMA … Dictionary of banking and finance
Yield curve — This article is about yield curves as used in finance. For the term s use in physics, see Yield curve (physics). Not to be confused with Yield curve spread – see Z spread. The US dollar yield curve as of February 9, 2005. The curve has a typical… … Wikipedia
Money fund — Money funds (or money market funds , money market mutual funds ) are mutual funds that invest in short term debt instruments. Explanation Money market funds, also known as principal stability funds, seek to limit exposure to losses due to credit … Wikipedia
Market timing — is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or… … Wikipedia
market — Usually refers to the equity market. The market went down today means that the value of the stock market dropped that day. Bloomberg Financial Dictionary * * * ▪ I. market mar‧ket 1 [ˈmɑːkt ǁ ˈmɑːr ] noun 1. [countable] COMMERCE the activity of… … Financial and business terms
Market maker — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia