What Is a Money Market Fund? A money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries). Money market funds are intended to offer investors high liquidity with a very
What Is Money on the Sidelines? Money on the sidelines is cash that is held either in savings or in low-risk, low-yield investment vehicles, such as certificates of deposits (CDs), instead of being placed in investments that have the potential for greater rewards. Investments with higher yields often include stock or bond market products. Key Takeaways
What Is a Money Order? A money order is a certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand. A money order functions much like a check, in that the person who purchased the money order may stop payment. Money orders are readily accepted and
A money purchase plan is an employee retirement benefit plan that resembles a corporate profit-sharing program. An employer deposits a percentage of a participating employee’s salary in the account every year, but the employee is not permitted to contribute to the fund. However, they can choose how to invest the money based on options offered
What Is the Money-Weighted Rate of Return? The money-weighted rate of return (MWRR) is a measure of the performance of an investment. The MWRR is calculated by finding the rate of return that will set the present values (PV) of all cash flows equal to the value of the initial investment. The MWRR is equivalent
What Is Money Zero Maturity? Money of zero maturity (MZM), which represents all money that is readily available, is a measure of the liquid money supply within an economy. It includes money as cash in hand or money in a checking account, for example. Money in a bank CD would not be counted, however, because it
What Is Monoline? Monoline is when a firm or individual specializes in a single line or discipline of the financial services business. It is often used to describe a company operating in only one industry segment, product, or service. Common monoline examples would include companies that only deal with credit cards, mortgages, or whole life
What Is a Monoline Insurance Company? A monoline insurance company is an insurance company that provides guarantees to debt issuers, often in the form of credit wraps that enhance the credit of the issuer. These insurance companies first began providing wraps for municipal bond issues, but now provide credit enhancement for other types of bonds
What Is a Monopolist? A monopolist is an individual, group, or company that controls all of the market for a particular good or service. A monopolist probably also believes in policies that favor monopolies since it gives them greater power. A monopolist has little incentive to improve their product because customers have no alternatives. Instead, their
What Is Monopolistic Competition? Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. The barriers to entry in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect its competitors. The competing companies differentiate themselves based on pricing and
