Definition of "money market" []

• The trade in short-term, low-risk securities, such as certificates of deposit and U.S. Treasury notes. (noun)
• A mutual fund that sells its shares in order to purchase short-term securities, the income from which is distributed among shareholders in the form of additional shares in the fund. Also called money market fund. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

• "One major mistake made by most investors, often on the advice of a novice investment salesman, is overdiversification: dividing investment capital among stocks, bonds, government securities, and money market funds."
• "In other words, by using Money Movement you have given yourself the best chance of catching the upswing or period of rising prices for stock, bond, and money market funds and at the same time avoiding the downsides."
• "Money Movement is based on the known but underused fact that the three most popular types of securities investments—stocks, bonds, and money market instruments—are all sensitive to general interest rates."