If the buyers no longer think that is a good price, they may drop their bid to $50.25. Someone may drop their offer to a lower price, or it may stay where it is. A trade only occurs if a seller interacts with the bid price, or a buyer interacts with the offer price. Bids and offers are constantly changing as the buyers and sellers change their minds about which price to buy or sell at. The Bankrate promise The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. Investing in money market instruments can be a good way to utilize short-term funds to generate interest income, which is a better use than leaving your cash in a non-interest-bearing or low-interest-bearing vehicle. Money market accounts and instruments typically yield between 0.01% and 4%. This depends on the amount of money deposited, as some institutions require a higher deposit to earn the higher interest rate. Inflation/Disinflation/Deflation When you save money using a savings account, compound interest is favorable. The interest earned on these accounts is compounded and is compensation to the account holder for allowing the bank to use the deposited funds. Individuals borrow money […]