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There are several variations on repos: Options are versatile securities that can be used to make a profit when a stock price goes down (put option or option to sell) or when the stock price goes up (call option, or option to purchase).Read tip The Desjardins Personal Financial Index Measure your financial skills and knowledge. My index 2 - Have you taken control of your finances?
They're usually issued in denominations of $1,000, $5,000, $10,000, $25,000, $50,000, $100,000 and $1 million.
Note that brokers generally require a minimum purchase of $10,000.
Governments issue them to borrow money for a short period.
T-bills are issued with maturities that range from 1 month to 1 year.
Of course, in that case, their return isn't guaranteed. They're called Eurodollars because they first appeared in Europe (in London, in 1957, to be precise), but they can be held anywhere outside the United States.
As Eurodollars are held outside the United States, they're not subject to the rules of that country's central bank.Unfortunately, they have led to major fraud when backed by unreliable assets.Lenders have lost a lot of money because they didn't sufficiently verify the validity of the collateral offered to them.On average, maturities range from 1 to 2 months and are usually no longer than 9 months.Commercial paper is issued at a discount, reflecting current market interest rates.They aren't as liquid as term deposits held in the United States but provide greater return.Eurodollar deposits are valued in the millions and have maturities of less than 6 months.Bankers' acceptances are especially useful when the creditworthiness of a foreign trade partner is unknown.Banker's acceptance are traded at a discount from face value and can be sold in the secondary market prior to maturity. dollar-denominated deposits at banks located outside the United States.The money market offers a variety of securities with maturities that range from a few days to 1 year. Here's a brief description of this market's principal instruments.Treasury bills, or T-bills, are the most marketable money market securities.