Investment that will mature to cash within a one year time period and is considered liquid is short-term investment. An assets is liquid if the owner can readily access it and it has an established market where prices cannot be manipulated by one buyer or seller. Short-term investment has very low risk and low return. For example; A farmer invest certain amount and purchase a small goat. He raise the goat for 1 year (if he needs money within 1 year period, he can easily sell it in the market price) and sell it in market price.
A short-term investing or savings account acts as an easily accessible place to park money for near-term goals, while also earning some interest to combat inflation. And with today’s higher interest rates, it’s a good time to give these accounts a second look.
Ownership is transferred easily in short-term. The seller have a capability to transfer ownership quickly. The buyer can easily influence the market price of a cash
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[…] requires expertise for good return on investment (ROI). Investment is made for long term and short term. An investment is an asset or item acquired with the goal of generating income or appreciation. […]