A money market fund is a flexible correlative fund that invests in impermanent debt securities like commercial paper and the US Treasury bills. They strive to constrain exposure to depletion as a result of debts. Money market funds are widely known for being secure as bank deposits yet with a higher productivity provision. They are regulated in the United States under the Investment Company Act of 1940 and are important producers of liquidity to financial go-betweens.
In 1971 the world’s first money market fund was created and known as the Reserve Fund. While large-scale money was bought and sold before this invention, Bent II’s father and his partner, Henry came up with a formal way and developed other methods.
This invention was a way to give investors fast liquidity and safety for their money more than anything else. Contrary to other financial instruments, money market funds hustle to regulate a constant value 1 dollar per share. Funds can pay the surplus to investors. The securities in which money market may buy stock include the commercial paper, repurchase agreements, and temporal bonds among others. There are less risks involved with this, which is appealing to investors.
Background Information about Bruce Bent II
Bruce Bent II was born in New York. He went to Northeastern University where he recieved his Bachelor’s degree in Philosophy. His father was well known in the financial world and it seems he has taken up the family business himself. After completing his studies, Bent II began his career in the financial industry. He helped many businesses such as banks and retail marketers with innovated solutions. Currently he is the Vice Chairman of the Board and President of Double Rock Corporation where he continues to use his financial expertise to help other companies.
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