OPPENHEIMER MONEY MARKET FUND, INC.
Supplement dated May 4, 1999 to the
Statement of Additional Information dated November 27, 1998
The second, third and fourth paragraphs in the section titled "Determination of
Net Asset Value Per Share" starting on page 22 of the Statement of Additional
Information are replaced by the following paragraphs:
The Fund's Board of Directors has adopted the amortized cost method to
value the Fund's portfolio securities. Under the amortized cost method, a
security is valued initially at its cost and its valuation assumes a constant
amortization of any premium or accretion of any discount, regardless of the
impact of fluctuating interest rates on the market value of the security. This
method does not take into consideration any unrealized capital gains or losses
on securities. While this method provides certainty in valuing securities, in
certain periods the value of a security determined by amortized cost may be
higher or lower than the price the Fund would receive if it sold the security.
The Fund's Board of Directors has established procedures reasonably
designed to stabilize the Fund's net asset value at $1.00 per share. Those
procedures include a review of the Fund's portfolio holdings by the Board of
Directors, at intervals it deems appropriate, to determine whether the Fund's
net asset value calculated by using available market quotations deviates from
$1.00 per share based on amortized cost.
The Board of Directors will examine the extent of any deviation between
the Fund's net asset value based upon available market quotations and amortized
cost. If the Fund's net asset value were to deviate from $1.00 by more than
0.5%, Rule 2a-7 requires the Board of Directors to consider what action, if any,
should be taken. If they find that the extent of the deviation may cause a
material dilution or other unfair effects on shareholders, the Board of
Directors will take whatever steps it considers appropriate to eliminate or
reduce the dilution, including, among others, withholding or reducing dividends,
paying dividends from capital or capital gains, selling portfolio instruments
prior to maturity to realize capital gains or losses or to shorten
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the average maturity of the portfolio, or calculating net asset value per share
by using available market quotations.
During periods of declining interest rates, the daily yield on shares of
the Fund may tend to be lower (and net investment income and dividends higher)
than those of a fund holding the identical investments as the Fund but which
used a method of portfolio valuation based on market prices or estimates of
market prices. During periods of rising interest rates, the daily yield of the
Fund would tend to be higher and its aggregate value lower than that of an
identical portfolio using market price valuation.
May 4, 1999 PX0200.006
