Money market fund. A fund that invests in high quality, highly liquid (“cash-like”), short-term securities, and that seeks to maintain a stable net asset value (NAV) of $1.00 per share using the amortized cost method of accounting. MMFs are subject to the credit risk limitations and diversification requirements of Rule 2a-7 under the 1940 Act. During the financial crisis, as a result of a liquidity freeze, one MMF “broke the buck,” or traded below $1.00.

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