• Money Market Fund

• Primary Market
• Government Bank
• also called a money market mutual fund
• is an open-ended mutual fund that invests in short-term debt
securities such as US Treasury bills and commercial paper.
• widely regarded as being as safe as bank deposits yet
providing a higher yield.
• very liquid short-term investments with high credit quality.
• Money market funds are mutual funds designed to be low-risk,
liquid, and short-term investments. They are usually offered by
companies that have invested in other money market instruments
and are almost always composed of highly rated paper.
1. Safety

The securities in which these funds invest are stable and generally
safe investments. Money market securities provide a fixed return
with short maturities. By purchasing debt securities issued by
banks, large corporations, and the government, money market
funds carry a low default risk while still offering a reasonable
return.
2. Low Initial Investment

Money market securities generally have large minimum purchase

requirements that make it difficult for the vast majority of
individual investors to buy. In contrast, money market funds have
substantially lower requirements that are even lower than average
mutual fund minimum requirements. As a result, money market
funds allow investors to take advantage of the safety related to a
money market investment at lower thresholds.
3. Accessibility

Money market fund shares can be bought and sold at any time
and are not subject to market timing restrictions. Most of these
funds provide check-writing privileges and offer investors same-
day settlement, which is similar to trading money market securities.
• A primary market issues new securities on an exchange for
companies, governments and other groups to obtain financing
through debt-based or equity-based securities. Primary markets
are facilitated by underwriting groups consisting of investment
banks that set a beginning price range for a given security and
oversee its sale to investors.
• The primary market is where securities are created. It's in this
market that firms sell (float) new stocks and bonds to the public
for the first time. An initial public offering, or IPO, is an example
of a primary market. These trades provide an opportunity for
investors to buy securities from the bank that did the initial
underwriting for a particular stock. An IPO occurs when a
private company issues stock to the public for the first time.
• The important thing to understand about the primary market is
that securities are purchased directly from an issuer.
• It is related with New Issues:
The first important feature of the primary market is
that it is related with the new issues. Whenever a
company issues new shares or debentures, it is known as
Initial Public Offer (IPO).

• It has No Particular Place:

Primary market is not the name of any particular
place but the activity of bringing in new issues is called
the primary market.
• It has Various Methods of Floating Capital
Following are the methods of raising capital in the primary market:
(a.) Public Issue:
Under this method, the company issues a prospectus and invites
the general public to purchase shares or debentures.
(b.) Offer for Sale:
Under this method, firstly the new securities are offered to an
intermediary (generally firms of stock brokers) at a fixed price. They
further resell the same to the general public. The advantage of doing this
is that the issuing company feels free from the tedious work of making a
public issue.
(c.) Private Placement:
Under this method, the company sells securities to the
institutional investors or brokers instead of selling them to the general
public. They, in turn, sell these securities to the selected clients at a higher
price. This method is preferred as it is a cheaper method of raising funds
as compared to a public issue.
 (d.) Right Issue:
This method is used by those companies who have
already issued their shares. When an existing company issues
new shares, first of all it invites its existing shareholders. This
issue is called the right issue. In this case, the shareholder has
the right either to accept the offer for himself or assign a part or
all of his right in favour of another person.

(e.) Electronic Initial Public Issue (e-IPOs):

Under this method, companies issue their securities
through the electronic medium (i.e. internet). The company
issuing securities through this medium enters into a contract
with a Stock Exchange.
• It Comes before Secondary Market:
The transactions are first made in the primary market.
The turn of the secondary market comes later.
For example, company ABCWXYZ Inc. hires five underwriting
firms to determine the financial details of its IPO. The underwriters
detail that the issue price of the stock will be $15. Investors can
then buy the IPO at this price directly from the issuing company.
This is the first opportunity that investors have to contribute capital
to a company through the purchase of its stock. A company's
equity capital is comprised of the funds generated by the sale of
stock on the primary market.
 A government-owned bank is a financial institution
controlled by the government as opposed to a private entity.
These banks are regulated and supervised by the Office of the
Comptroller of the Currency.
• Land Bank of the Philippines
Is a universal bank in the Philippines owned by the Philippine
government with a special focus on serving the needs
of farmers and fishermen. While it provides the services of a universal
bank, it is officially classified as a "specialized government bank" with a
universal banking license.
Land Bank was established on August 8, 1963 as part of
the Agricultural Land Reform Code as part of a program of land reform in
the Philippines. It was to help with the purchase of agricultural estates for
division and resale to small landholders and the purchase of land by the
agricultural lessee. In 1965, LANDBANK's by-laws were approved and its
first board of trustees was formed, with the Secretary of Finance as
Chairman.
Land Bank is the fourth largest bank in the Philippines in terms of
assets and is the largest government-owned bank. It is also one of the
biggest government owned and controlled corporations in the Philippines.
• Development Bank of the Philippines
Is a state-owned development
bank headquartered in Makati City, Philippines.
It is the eight-largest bank in the Philippines
in terms of assets with assets of more than P669-
billion as of 2018. It is the second-largest state-
owned bank. It is also one of the largest
government-owned and controlled corporations
(GOCCs) in the Philippines.
• Al-Amanah Islamic Investment Bank of the Philippines
Is the first and only Islamic bank in the Philippines.
Al-Amanah Islamic Bank traces its roots to the
Philippine Amanah Bank, established by
President Ferdinand Marcos in 1973 by virtue of
Presidential Decree No. 264.With an initial capital of
100 million pesos, it was one of the world's first Islamic
banks. Its charter originally mandated it to provide
financial services to the provinces
of Basilan, Cotabato, Lanao del Norte, Lanao
delSur, Palawan, Sulu,
Tawi-Tawi, Zamboanga del Norte and Zamboanga del
Sur, where there are large, if not predominant, Muslim
populations.