A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Money Market FundA low-risk fund that invests in short-term, high-quality debt and aims to keep a stable share price.
- Treasury BillA short-term government loan that matures in a year or less and is sold at a discount to its face value.
- LiquidityHow quickly and easily you can turn an investment into cash without moving its price much.
- Asset ClassA group of investments that behave similarly, such as stocks, bonds, cash, or real estate.
- CD (Certificate of Deposit)A bank product where you lock up money for a set term in exchange for a fixed interest rate.
- Emergency FundCash set aside for life's surprises, so a bad week doesn't turn into debt.
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Plain-English education — not personalized legal, tax, or investment advice.