Long-term investments enable you to expand your portfolio and achieve goals. Short-term investments might give access to rewards regarded as safer and are intended for purposes that are closer at hand.
Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
These investments often consist of high-quality, extremely liquid assets or investment vehicles.
Short-term investments can also specifically refer to financial assets owned by a corporation that are of a similar nature but with a few extra criteria.
Short-term investments refer to investments that a firm has made that are anticipated to be converted into cash within one year, are recorded in a separate account, included in the current assets of corporate balance sheet.
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