break the dollar

break the dollar. A phrase used to describe when the net asset value (NAV) of a money market fund is repriced from its stable $1.00 NAV, an event that could be triggered by a deviation greater than one-half of 1 percent (one-half cent, or $0.0050) between the fund’s mark-to-market value (shadow price) and its stable $1.00 NAV. Also known as break the buck.