Posted on January 25, 2010.
What is money market funds?? exactly what it is, I have a paypal account and it says "7 days average yield of 1/31/08 is" 3.99%, exactly what it is. I also want to make money Additional, but do not know exactly what it is and how it works exactly. He also said that "investments in PayPal Money Market Fund are not insured by the FDIC. Past performance does not guarantee future results. Although the Fund seeks to maintain the value of your investment at $ 1.00 per share, it is possible to lose money by investing in the fund. "
So please advise me .. it is safe or what I can do without investing money in paypal ..
Mutual funds are technically open-end investment management company regulated under the Investment Company Act of 1940. Indeed, investors pool their own investment proportionate share of a pool of securities. "Money market funds" investing in different types of short term (less than 120 days of the maturity of debt), mostly commercial paper.
Money market funds have experienced strong growth in popularity in the early1980s, during a period of very high inflation - often well over 10%. At that time, the interest rate that banks could pay on savings accounts has been limited by federal regulation to less than 5%, so that people lost money on the money they kept in that accounts. People who are not wealthy do not generally have enough money to buy (invest in) the money market instruments. money market funds allowed them to pool their investments to be able to take advantage of high yields of interest rates available on money market. money market funds to maintain their effect share price stable at $ 1.00 per share.
bank savings accounts are insured by the Federal Deposit Insurance Corporation, money market accounts of mutual funds are not bank accounts and are not insured. The interest rate depends on the rate of market instruments placed, so there is no guaranteed rate of return that are available in certain bank accounts and instruments.
money market accounts are safe enough for all practical purposes. There should be a major economic problem to affect them, problems so severe that the difficulties encountered by the problems because money market would be the least of his worries.
There are hundreds of money market funds available in addition to that offered by PayPal.
Basically, a mutual fund that deals with money invested in bank accounts - even if the gains are labeled as "dividends".
The most beneficial for the money that is in an account for short periods of time (between investment operations)
Sure enough most of the time, but the same yields can generally be made on bank deposits insured if the parking lot of money for long enough periods of time.
A money market fund is a mutual fund composed of ultra short-term securities (commercial paper). The fund is not insured and the FDIC is, therefore, not 100% guaranteed. However, it is most certainly not an FDIC account may contain.
The fund should not be confused with a money market account is an account in a bank or credit union. The money market account is a marketing scheme created by the banks to compete with companies of mutual funds that Offet money maket funds.
when people rip banks
