Break the Buck Definition | What Does Breaking the Buck Mean?

Posted by Grace under Investing on March 10, 2016

Break the buck is a term in money market fund investing. Cases of breaking the buck in investing is very rare. It is important to expand your knowledge in different investment terms like “break the buck“. What is break the buck all about?

Break the Buck Definition

The fund is said to “break the buck” when a money market fund’s share price falls below $1-a-share value it is intended to maintain. Money funds are supposed to be safe investments and easily converted into cash; thus the stable $1 share price. Cases of breaking the buck have been rare.



C. Frederic Wiegold, author, The Wall Street Journal Lifetime Guide to Money – Everything You Need to Know About Managing Your Finances – for Every Stages of Life, 1997 Hyperion, New York, USAPage: 488

Investing can be easily done when you are knowledgeable about the different investment terminologies such as break teh buck, stock split, balance sheet, capital gains, return on investment bonds, ex-dividend etc.

There are many people who invest money without education. That’s the reasons why they became a scam victims. You will get more benefits if you are familiar with the investment terms. So, starting today you must spend some time to educate yourself about these investment terminologies.

Learn More About Investing

Maybe you will ask, how can I learn more about investing? There are many ways to learn it. The first thing you need to do is to talk to registered financial planners, investment experts or financial experts. Ask them what is the meaning of break the buck, they will surely know about it.

However, it will be more interesting if you will not just ask a question related to break the buck. You need to ask financial and investment experts on how can you start investing your money and what are the things to consider when you invest your money.

Aside from asking financial experts, you can also learn investing through readings investment books and investment blogs or personal finance blogs.

So, what can you say about this post? Did you find it useful? Learn more about break the buck and different investment terms soon. Stay tune to return on investment blog. Share this page with your friends and leave a comment.

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