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To: Gary Kao who wrote (144909)	10/8/2001 8:51:01 PM
From: wanna_bmw	Read Replies (2) \| Respond to of 186894

Gary, Re: what are "Money market auction rate preferred stocks 181,279"? If you ever open a Money Market Account, your statements would show that you have X amount in cash, and the rest distributed to your investments. This cash amount is not really cash, but instead is composed of micro-investments from your brokerage firm that have the equivalent value of $1.00. Your brokerage firm ensures that the value does not change by any significant amount, thus maintaining your cash holdings at approximately the same value. It allows your brokerage firm to use your money as they see fit, without any other legal barriers. Therefore, it cannot be FDIC insured. I assume AMD's Money Market stocks are the same deal. wanna_bmw P.S. Any investment expert, please feel free to correct my amateur understanding of this process.

To: Gary Kao who wrote (144909)	10/9/2001 7:54:55 AM
From: GVTucker	Read Replies (1) \| Respond to of 186894

Gary, RE: money market auction rate preferred Auction rate preferred stock is an adjustable rate preferred stock in which the dividends are reset periodically, usually bimonthly or weekly but also sometimes monthly or quarterly. The rate reset means essentially that at auction, the paper trades at par, although in some rare cases the auction may fail, meaning that there aren't enough buyers out there for the paper to move. This might happen if the issuer is close to failure. Money market funds often invest in this type of paper, as well as companies that want some yield from their cash but don't want to take the risk of holding long bonds.