Gerin: It's investment humor. My coworker told me one of our brokers called to enter a sell order, but he first wanted to know about the cost basis. So we got the account up and asked him which investment he needed the basis for, and he said, "the money market fund."
Does that make anyone but me laugh?
kohlrak: I have a strange feeling that, since i didn't take an accounting course, i'm missing something insanely basic and fundamental, but i'm going to go out on a limb here and say he was talking about "currency investment," you know, where people try to make money by betting on the value of a certain currency either going up or down?
It's just that every investment account has a portion that is uninvested cash, just money sitting there waiting to be either invested or sent out somewhere, like in a parking space. Since it is not invested in anything, it does not go up or down in value with the fluctuations of the stock market, bond market, etc.
The cost basis of an investment is the value that was placed it, not counting interest received or any appreciation of its value. A money market fund does not fluctuate, and therefore it is meaningless to ask its cost basis.