MONEY MARKET FUND Definition

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MONEY MARKET FUND is a fund that invests in various short-term debt instruments, i.e., commercial paper, negotiable certificates of deposit, bankers acceptances, Treasury bills, etc. Shares seek to maintain a net asset value of $1 but the interest rate changes daily.

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OPERATING RATIO measures a firms operating efficiency; calculated: company operating expenses divided by its operating revenues.

ENTITY THEORY is where a legal entity is regarded as having a separate existence from the owners. The financial statements are prepared from the perspective of the entity, not its owners. See PROPRIETARY THEORY.

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