Breaking the Buck refers to a decline in the normally constant $1 net asset value (NAV) of a money market fund. This can occur if the fund suffers severe losses or if investment income falls below operating expenses.
A Money Market Fund is an open-ended mutual fund that invests in short-term, highly liquid and safe securities, providing investors with money market rates of interest. The net asset value generally remains constant at $1 per share, while the interest rate varies.
