Short Term Investments
September 19th, 2006
Question: What are some short term investments?
Answer: Generally anything you invest in less than a year is considered short term, especially by the IRS!
Are you sure you don’t mean investments with short maturities? Some CD’s, commercial paper,
T-bills, most Options, have maturities from 30 days to a year, and are generally very liquid, meaning they can readily be converted to cash. Typically stocks, bonds, mortgages, Treasury notes and bonds, savings bonds, precious metals, gems, art, real estate, collectibles are held much longer than a year, and would normally be classified as Long Term Investments, and not as readily converted to cash without some principle risk. But as you know, there are people that buy stocks and real estate and “flip” them for a quick profit.
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