What is Money Market?
A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills, commercial paper, municipal notes, federal funds and repurchase agreements (repos). Read more for examples and further explanation including related video clips and also comments
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Tag: short term
Estimated Current Return definition explanation
What is Estimated Current Return?
The estimated return for a unit investment trust over the short term. The estimated current return is calculated by taking the estimated annual interest income from the securities of the portfolio and dividing by the maximum public offering price, net of the maximum sales charge for the trust.
This measure is less exact than the estimated long-term return and is more susceptible to interest rate risk during the life of the portfolio. Read more for examples and further explanation including related video clips and also comments
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Fixed-Income Style Box definition explanation
What is Fixed-Income Style Box?
Created by Morningstar, a fixed-income style box is designed to visually represent the investment characteristics of bonds and bond mutual funds. This is a valuable tool for investors to use to determine the risk-return structures of their bonds/ bond portfolios and/or how these investments fit into their investing criteria.
Also referred to as a “”bond style box””. Read more for examples and further explanation including related video clips and also comments
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