Investments, tenth edition

  Money Market Funds   

These funds invest in money market securities such as com-

mercial paper, repurchase agreements, or certificates of deposit. The average maturity of 

    4.3 

Mutual Funds  

bod61671_ch04_092-116.indd   96

bod61671_ch04_092-116.indd   96

6/18/13   8:35 PM

6/18/13   8:35 PM

Final PDF to printer

---

  C H A P T E R  

4

  Mutual Funds and Other Investment Companies 

97

these assets tends to be a bit more than 1 month. Money market funds usually offer  check-

writing features, and net asset value is fixed at $1 per share,  

2

   so that there are no tax impli-

cations such as capital gains or losses associated with redemption of shares.