| Money Market
Mutual Fund
A money market mutual fund* is a diversified, short-term
fund that seeks to provide its investors with interest
income, preservation of capital, and maintenance of
liquidity. Three types are offered:
- Money market funds invest in high quality
money market instruments such as certificates
of deposit, bankers acceptances, and commercial
paper.
- Tax-exempt funds invest in short-term securities
exempt from federal tax.
- Treasury/Government funds invest in obligations
issued by the federal government and its agencies,
and in repurchase agreements backed by those
securities
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Additional information is found in the prospectus, which
should be read and retained for future reference by
each customer.
Terms and Structures
Maturity
The fund has no maturity, but provides daily liquidity,
which makes it convenient for corporations with variable
cash flow needs.
Issued
Fund shares can be bought and sold on any given market
day.
Form
Fund shares are registered in the owner’s name and are
held at a custodian bank for fund owners.
Quoted
Yield is quoted daily; confirmations are issued when
trading activity occurs and a monthly statement is sent
to all existing fund shareholders indicating interest
paid during the previous month.
Rate Structure
Yields vary according to market conditions and interest
rate movements.
Interest
Dividends equal to all the fund’s investment income
are declared each business day, and paid or reinvested
in the fund on the last calendar day of each month.
Denominations
The minimum initial purchase and additional buy/sell
increments vary by fund.
For more information on Business Finance Options, click
here to send us your questions, or contact us at
1-800-946-4178.
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