Reserve Primary Fund

Reserve Primary Fund

The Reserve Primary Fund is a large money market mutual fund.

Normally, the net asset value of money market funds is kept at $1.

On September 16, 2008, during the Global financial crisis of September-October, 2008, it lowered its share price below $1 (breaking the buck) because of exposure to Lehman Brothers debt securities. This resulted in demands from investors to return their funds as the financial crisis mounted. [http://www.nytimes.com/2008/09/18/business/yourmoney/18money.html "Money Market Funds Enter a World of Risk"] article by Tara Siegel Bernard in "The New York Times September 17, 2008]

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