Typically, companies might invest in money market mutual funds, interest-bearing deposits, U.S. treasuries, etc.
Money market mutual funds are exempt from SEC requirements that mutual funds maintain floating net asset values.
The FDIC does not insure money market mutual funds yet they are still considered safe investments.
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Ms. McCLANAHAN: Well, money market mutual funds are run by very large companies.
For example, some custodians require pensions to sweep all their uninvested cash into money market mutual funds affiliated with the custodian.
The Federal Reserve responded with several programs, including a facility to finance bank purchases of high-quality asset-backed commercial paper from money market mutual funds.
Notably, we have introduced facilities to purchase highly rated commercial paper at a term of three months and to provide backup liquidity for money market mutual funds.
However, money market mutual funds are not usually government insured.
Together with a Treasury program that provided partial insurance to investors in money market mutual funds, these efforts helped stanch the cash outflows from those funds and stabilize the industry.
In some cases, as in our programs to backstop money market mutual funds, the purpose of the facility is to serve, once again in classic central bank fashion, as liquidity provider of last resort.
Ms. McCLANAHAN: Well, the safest thing, especially for short-term money, is to put into CDs - and I would just use short-term CDs right now interest rates being so low - you could use money market funds, money market mutual funds.
Following a prominent fund's "breaking of the buck"--that is, a decline in its net asset value below par--in September, investors began to withdraw funds in large amounts from money market mutual funds that invest in private instruments such as commercial paper and certificates of deposit.
That would leave depositors, like participants in money-market mutual funds, able to pull money out without fear that a panic would render their bank illiquid.
Last year Americans increased their financial assets--checking accounts, money market funds, mutual funds, IRAs, etc.
White said she has studied pending issues, including strengthened control over money-market mutual funds.
Burned on Lehman debt, many money-market mutual funds have also stopped buying commercial paper.
It is seeking stricter regulations for money-market mutual funds.
Instead of gathering dust, this money went fleeing to the higher returns from money market and mutual funds, thus allowing anyone with an idea to either invest or get access to capital to build a company of their own, go public, and create enormous wealth.
Just in the last two months, individual investors have been putting money back into stock mutual funds from money market funds, according to figures from the Investment Company Institute.
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The other, fee-based side of its business involves managing long-term investor assets in exchange-traded funds, mutual funds and money market accounts.
Ads from bbdo, a unit of ad giant Omnicom Group, emphasize E-Trade's mutual funds, money-market accounts and research capabilities.
At the first level, workers' money would be invested in a collective money market fund similar to the ones the mutual funds industry offers today.
Ads from bbdo, a unit of ad giant Omnicom Group (nyse: OMC - news - people ), emphasize E-Trade's mutual funds, money-market accounts and research capabilities.
Money-market funds are a specialized kind of mutual fund that is restricted to investing in very short-term securities with little chance of default.
ETFs account for more than 13% of all mutual fund assets (excluding money market funds), and assets have more than doubled since 2008, according to Michael Rawson, ETF analyst at Morningstar.
Money market funds, which are a type of mutual fund, have the reputation of being a conservative port where money will earn some interest and remain secure.
The investment choices available: Large corporations typically limit investment choices to mutual funds, bonds and money-market instruments.
High net worth individuals indicate they are most likely to invest in individual stocks (62 percent), mutual funds (43 percent), money market funds (43 percent), checking and savings accounts (43 percent), international investments (41 percent) and fixed-income investments (38 percent).
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In spite of the impressive new bull market in stocks, investors continued to pull money out of stocks and equity mutual funds all last year.
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For all of last year, and most of this year, even as the impressive new bull market in stocks continued, investors pulled money out of U.S. stock mutual funds at a dramatic pace, and poured money into bonds and bond funds as a safe haven at a near record pace.
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