Investment Term Of The Day : Short-Term Investments
Jan 14, 2021 ·
3m 9s
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Description
Short-term investments, also known as marketable securities or temporary investments, are those which can easily be converted to cash, typically within 5 years. Many short-term investments are sold or converted...
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Short-term investments, also known as marketable securities or temporary investments, are those which can easily be converted to cash, typically within 5 years. Many short-term investments are sold or converted to cash after a period of only 3-12 months.
Some common examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills. Usually, these investments are high-quality and highly liquid assets or investment vehicles.
Short-term investments may also refer specifically to financial assets—of a similar kind, but with a few additional requirements—that are owned by a company. Recorded in a separate account,
and listed in the current assets section of the corporate balance sheet, these are investments that a company has made that are expected to be converted into cash within one year.
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Some common examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills. Usually, these investments are high-quality and highly liquid assets or investment vehicles.
Short-term investments may also refer specifically to financial assets—of a similar kind, but with a few additional requirements—that are owned by a company. Recorded in a separate account,
and listed in the current assets section of the corporate balance sheet, these are investments that a company has made that are expected to be converted into cash within one year.
Information
Author | Africa Business Radio |
Organization | Africa Business Radio |
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