Short-Term Investment

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A short-term investment (also known as a temporary investment or marketable security), is a security that is expected to be sold within 3 to 12 months. Simply put, it is an equity or bond security that is expected to be held over a short time and sold to bring quick returns within 3 to 12 months. Short-term investments are commonly made up of short-term bonds, Treasury bills, and other money market funds.Short-Term Investments ExplainedShort-term investments are reported on the ‘current asset’ section of a company’s balance sheet. They are often grouped with the cash and cash equivalents categories considering the…
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