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Difference between short-term and long-term investments.

Explain the difference between short-term and long-term investments. Cite examples of each.

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Short term Investments

This type of investment is short term, which means that investors can only invest in this type of investment in less than 1-year of period. Interestingly, the money market is highly liquid and low risk (Fidelity Investments, 2006). For example, certificate of deposits, treasury bills, commercial paper.

Thus, these help in managing the idle funds in a better ...

Solution Summary

This solution discusses short and long term investments in 185 words with one reference.