Both of the previous answer are correct but a couple of things are missing. First money markets aren’t FDIC insured that is correct but money markets, at brokerage firms at least, are SIPC insured up to 100k, now most firms hace supplemental insurance up to 20 or 100 million. Also money markets usually invest in short term paper so it’s still very liquid.
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Both of the previous answer are correct but a couple of things are missing. First money markets aren’t FDIC insured that is correct but money markets, at brokerage firms at least, are SIPC insured up to 100k, now most firms hace supplemental insurance up to 20 or 100 million. Also money markets usually invest in short term paper so it’s still very liquid.