The money market is the marketplace for debt instruments with short maturities and high liquidity levels. Participants in this market use it to borrow and invest for short periods of time. Those participating directly in the market do so in large denominations, exceeding $5 million per transaction. Money market funds allow individual investors to also engage in the market at smaller investment levels. The types of securities traded on the money market include the following:
Negotiable certificates of deposit
The money market differs from the capital markets, where longer-term investments are traded. The money market is much less regulated than the capital markets.