27 June 2022 17:45

How to understand “Money Market Purchase” and “Money Market Redemption” transactions in stock account?

What does cash alternative redemption mean?

Alternative Cash Redemption means any of the following: (i) the redemption of certain shares of Unimin Capital Stock in exchange for a note or other evidence of indebtedness; (ii) the repayment, satisfaction, or other discharge of a note or other evidence of indebtedness issued in the redemption described in the

What is a MMDA1?

What is a MMDA1? A money market deposit account (MMDA) is a high-yield savings account that allows depository financial institutions to be more competitive with money market mutual funds. (FDIC), and they generally earn interest at a higher rate than standard savings accounts.

What are cash alternatives in Ameritrade?

TD Ameritrade Cash – TD Ameritrade Cash is a cash sweep alternative. Cash balances held in your brokerage account earn simple interest and are protected by the SIPC coverage applicable to the account, and the supplemental private insurance obtained by TD Ameritrade, up to applicable limits.

What is cash sweep in stocks?

In a cash sweep, an investment firm figuratively sweeps clients’ uninvested cash balances into a (again figurative) dust pan and empties it into either FDIC-insured accounts held at one or a network of banks, or into one of several money market mutual fund offerings.

Can you withdraw from a money market account at any time?

No, money market accounts do not have time limits or terms. You can deposit or withdraw money from the account at any time, though there may be limits on how many withdrawals or transfers you can make in a single statement period.

Can I withdraw money from sweep account?

Yes, you can withdraw money from your sweep account like you normally would with a checking or savings account.

What is margin balance?

Margin balance is the amount of money an investor owes to the brokerage. When an investor uses the brokerage’s funds to buy securities, this results in a margin debit balance. Similar to a credit card or traditional loan, a margin balance is a line of credit that the borrower must repay with interest.

What is BP effect?

The BP effect, or buying power effect, is the impact a position has on an account’s available trading capital, or buying power (Figure 1). With naked short option positions, the BP effect is negative, and it’s easy to see how much capital one position is using.

How many transactions are allowed in a money market account?


Banks historically limited the number of transactions customers can make each month in savings and money market accounts, the result of Regulation D, a Federal Reserve Board rule that limited withdrawals and transfers to six each statement cycle.

What are the disadvantages of a money market account?

Disadvantages of a Money Market Account

  • Minimums and Fees. Money market accounts often need a minimum balance to avoid a monthly service charge, which can be $12 per month or more. …
  • Low Interest Rate. Compared to other investments, money market accounts pay a low interest rate. …
  • Inflation Risk. …
  • Capital Risk.

What are the rules for a money market account?

Look for a money market account with a high interest rate and no monthly fee. The account should also have a low minimum balance — less than $1,000 is often attainable. Some institutions require $10,000 or more to earn the best rates or avoid a fee, while others have no minimum.

Can I withdraw market account?

Money market accounts allow you relatively easy access to your money with a few limitations. The Federal Reserve Board specifies that customers are allowed no more than six withdrawals per month from money market accounts. ATM and teller withdrawals don’t count towards this limit.

Can you lose your money in a money market account?

Money market funds are not insured by the FDIC or the NCUA, which means you could possibly lose money investing in a money market fund.

Who pays the most interest on money market accounts?

Here are the best money market account rates:

  • Vio Bank, APY: 1.03%, Minimum balance to open: $100.
  • Ally Bank, APY: 0.90%, Minimum balance to open account: $0.
  • Sallie Mae Bank, APY: 0.90%, Minimum balance to open: $0.
  • CIT Bank, APY: 0.85%, Minimum balance to open: $100.

What is the difference between savings account and money market account?

Money market accounts usually allow you to write checks and use ATM and debit cards for withdrawals, just like checking accounts. With a savings account, you typically have ATM access but can’t write checks. You may need to take money out via electronic transfer or by calling the bank.

Which is better money market or savings account?

Money market accounts often have a minimum deposit or balance requirement that is higher than regular savings accounts. But they tend to offer higher returns, which are more on par with money market funds. The interest rates an account offers may vary, depending on the amount of money you hold in your account.

How do you make money on a money market account?

Money market accounts pay a variable interest rate, so the rate consumers earn on their money can fluctuate over time. It’s common for these accounts to have tiered rates, meaning higher balances are rewarded with a higher annual percentage yield (APY).

How does a money market account work example?

A money market account is essentially a hybrid between a checking and savings account. It lets you write a limited number of checks each month and sometimes make debit purchases. And your money will earn a higher interest rate in a money market than it will in a checking or savings account.

How much money should you keep in a money market account?

Six to 12 months of living expenses are typically recommended for the amount of money that should be kept in cash in these types of accounts for unforeseen emergencies and life events. Beyond that, the money is essentially sitting and losing its value.