Liquidating a mutual fund

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Money market funds seek a stable net asset value, or NAV per share (which is generally

Money market funds seek a stable net asset value, or NAV per share (which is generally $1.00 in the United States); they aim to never lose money.The $1.00 is maintained through the declaration of dividends to shareholders, typically daily, at an amount equal to the fund's net income.Their purchases of asset-backed securities and large-scale funding of foreign banks' short-term U.

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Money market funds seek a stable net asset value, or NAV per share (which is generally $1.00 in the United States); they aim to never lose money.

.00 in the United States); they aim to never lose money.The

Money market funds seek a stable net asset value, or NAV per share (which is generally $1.00 in the United States); they aim to never lose money.The $1.00 is maintained through the declaration of dividends to shareholders, typically daily, at an amount equal to the fund's net income.Their purchases of asset-backed securities and large-scale funding of foreign banks' short-term U.

||

Money market funds seek a stable net asset value, or NAV per share (which is generally $1.00 in the United States); they aim to never lose money.

.00 is maintained through the declaration of dividends to shareholders, typically daily, at an amount equal to the fund's net income.Their purchases of asset-backed securities and large-scale funding of foreign banks' short-term U.

liquidating a mutual fund-53liquidating a mutual fund-51

An argument has been made that FMDI was not technically a money market fund as at the time of liquidation the average maturity of securities in its portfolio exceeded two years.

Money market funds seek to limit exposure to losses due to credit, market, and liquidity risks.

Money market funds in the United States are regulated by the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940.

Money market securities must be highly liquid and of the highest quality. which at the time prohibited demand deposit accounts from paying interest and capped the rate of interest on other types of bank accounts at 5.25%.

Thus, money market funds were created as a substitute for bank accounts.

Money market funds are widely (though not necessarily accurately) regarded as being as safe as bank deposits yet providing a higher yield.

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