T-Bill (Treasury Bill)
Short-term government debt instrument usually sold at a discount.
Detailed Description
T-Bill (Treasury Bill)
What is a T-Bill?
A T-Bill, or Treasury Bill, is a short-term government debt security issued by the U.S. Department of the Treasury, sold at a discount to its face value.
What are the main types of T-Bills?
The main types of T-Bills are 4-week, 13-week, 26-week, and 52-week T-Bills, categorized by their maturities.
What are the investment benefits of T-Bills?
T-Bills are considered safe, highly liquid, provide predictable returns, and can stabilize a diversified investment portfolio.
What risks are associated with investing in T-Bills?
Risks include interest rate risk, federal income tax implications, and inflation risk affecting purchasing power.
How can investors purchase T-Bills?
Investors can purchase T-Bills through U.S. Treasury auctions via TreasuryDirect or through brokers in the secondary market.