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Short-term investments are marketable securities or highly liquid assets designed to provide a safe, temporary parking place for excess cash. Short-term investments can also refer to holdings a company owns but intends to sell within a year or (if debt) mature within a year.
Short-Term KEY TAKEAWAYS
Short-term investments are marketable securities or highly liquid assets designed to provide a safe, temporary parking place for excess cash.
Short-term investments can also refer to holdings a company owns but intends to sell within a year or (if debt) mature within a year.
CDs, money market accounts, and Treasury bills are common types of low-risk short-term investments.