What is short-term investment?

Short-term investment refers to all kinds of marketable securities that can be realized at any time and held for less than one year, as well as other investments that do not exceed one year, including all kinds of stocks, bonds, funds, etc. Short-term investment refers to the investment with an investment period of 1 year or less. Securities include all kinds of stocks and bonds, such as buying all kinds of stocks issued by other joint-stock companies and bonds issued by the government or other enterprises; Other investments such as monetary funds, materials, fixed assets and intangible assets invested by enterprises to other units.

The advantages of short-term capital contribution are quick profit, strong ability to make money and large space for value-added companies. This is also a very popular method. Stock common sense often attracts capital investment and improves profit rate because of its large appreciation space.

The risk of short-term investment is generally higher. While the income is high, it naturally brings more risks, which is what we need to pay attention to. Generally speaking, it is a good time to choose short-term investment in the stock market. At this time, choosing short-term investment can basically reduce many risks, which is also a very suitable opportunity.

When the cash of an enterprise is temporarily surplus, it is the best way to invest in stocks, bonds and treasury bills with strong liquidity. When the enterprise is short of cash, it can sell its investment to get cash. Short-term investment is a strategy for enterprises to use living funds. When an enterprise has too much monetary funds and it is not cost-effective to have a bank, part of the funds can be used for short-term investment.