What is a Taxable Money Market Fund?
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A Taxable Money Market Fund is a type of account offered by brokerage accounts. Your money that is not invested in the stock market is held held in a low-risk, low-return interest yielding account. This is great for the investor since they will still earn interest on uninvested money, but that does have tax implications as most interest does. This money is taxed by the federal and state governments so that is why it is called a taxable money market fund.
Think about a low-risk parking spot for uninvested brokerage cash that still earns interest. That interest is taxed by federal and state governments.