Disclaimer: Originally published in March 2017. It is being republished since it still remains an interesting topic till today.
In my previous post about Zero Coupons Bonds, we talked about the basics of bonds and bond evaluation. But it’s hard to talk about the essentials of finance and investment without talking about money market instruments.
Consider this post as a short and quick guided tour of financial instruments. I expect all my readers to be experts on money market instruments and the basic terminology that goes with it by the end of this post. Capisce?
What the hell are money market instruments?
Very short-term fixed income securities. Money market instruments are actually a very important part of the global financial markets and these assets serve a bunch of super important functions:
- Allows us young and naïve investors to dump money in some