Money markets are financial markets where short-term, highly liquid debt instruments are traded. These instruments typically have maturities ranging from overnight to one year and are used for managing liquidity, earning returns, and meeting short-term financing needs.
For corporate firm principals and clients, money markets can be a vital tool for optimizing cash management and maintaining financial stability and can typically be converted to cash quickly and with minimal risk of loss.
Money Market Instruments are generally considered low-risk regulated investments because they are issued by stable entities such as governments, financial institutions, or highly rated corporations and traded at face value.