How to Invest in Money Markets
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Most investors are hypocrites when it comes to the stock market. In the bull market they are raving about the stock market, where as in the bear market, they cannot stop cursing it. In the bear market 
alot of investors get out of the stock market and park their money in the money market, that offers an alternative to high risk investments.
Introduction to Money Market
Money market is one of the significant type of fixed income market. Money market securities are issued by governments, financial institutions and large corporations. These instruments are very liquid and considered safe. They are better known as a place for large institutions and government to manage their short-term cash needs. Because they are extremely conservative, money market securities offer significantly lower returns than most other securities.
How is Money Market different from Bond Market ?
The difference between the money market and the bond market is that the money market specializes in very short-term debt securities.
How is Money Market different from Stock Market ?
One of the main differences between the money market and the stock market is that most money market securities trade in very high amount which limits access for the individual investor. Also in case of money market, firms buy and sell securities in their own accounts, at their own risk, whereas in the stock market, a broker acts as an agent to buy and sell. Add to that, there is no central trading exchange in case of money market, but just transactions over the phone or electronic systems.
How to Get Access to Money Market ?
The easiest way to gain access to the money market is through a money market mutual fund or through a money market bank account. Some money market types, like Treasury bills, may be purchased directly. They can also be acquired through other large financial institutions with direct access to these markets.
Types of Money Market
There are different instruments in the money market, offering different returns and different risks. Let us take a look at the major money market instruments.
Introduction to Money Market
Money market is one of the significant type of fixed income market. Money market securities are issued by governments, financial institutions and large corporations. These instruments are very liquid and considered safe. They are better known as a place for large institutions and government to manage their short-term cash needs. Because they are extremely conservative, money market securities offer significantly lower returns than most other securities.
How is Money Market different from Bond Market ?
The difference between the money market and the bond market is that the money market specializes in very short-term debt securities.
How is Money Market different from Stock Market ?
One of the main differences between the money market and the stock market is that most money market securities trade in very high amount which limits access for the individual investor. Also in case of money market, firms buy and sell securities in their own accounts, at their own risk, whereas in the stock market, a broker acts as an agent to buy and sell. Add to that, there is no central trading exchange in case of money market, but just transactions over the phone or electronic systems.
How to Get Access to Money Market ?
The easiest way to gain access to the money market is through a money market mutual fund or through a money market bank account. Some money market types, like Treasury bills, may be purchased directly. They can also be acquired through other large financial institutions with direct access to these markets.
Types of Money Market
There are different instruments in the money market, offering different returns and different risks. Let us take a look at the major money market instruments.