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
