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Trading and Investment Terminology

Short term Investment

A short-term investment is also called a temporary investment or marketable security

It is a debt or equity security that is expected to be sold or converted into cash in the next 3 to 12 months.

 

Usually, these investments are high-quality and very liquid assets or investment vehicles like: 

  • Certificates of deposit, 
  • Money market accounts
  • High-yield savings accounts
  • Treasury bills.
  • Bond Funds
  • Municipal Bonds
  • Peer- to- peer lending
  • Roth IRA

 

Examples of investments that we are most familiar with the short term are:

  • Money markets
  • Savings accounts
  • Certificates of deposit
  • Treasury bills
  • Government bonds

 

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