Bonds and Securities
Types of bonds and securities in the money market include:
Treasury bonds are long term debt obligations which have maturities of over 7 years and receive interest payments semi-annually.
Corporate bonds are those issued by corporations and yield higher rates than municipal bonds. These bonds mature anywhere between 1 to 30 years, with the principal being repaid to bond holders on maturity.
Municipal bonds are those issued by governments, to raise capital for specific projects being undertaken. The bond holders receive interests which are exempt from taxes.
Equity securities are shares which represent ownership of a firm. Owners of shares receive dividends which fluctuate in market value.