Different investment periods
Short-term investment often refers to an investment with an investment period of less than one year or an operating cycle of more than one year, which can be recovered or realized at any time. The term of long-term investment is generally longer than one year or more business cycle. During this period, the enterprise does not want to recover or cannot recover its invested funds.
(2) Different investment methods.
Short-term investment mainly includes buying stocks and bonds that can be realized at any time. Long-term investment includes not only buying stocks and bonds of the investing enterprise, but also directly investing in other enterprises with liquid assets such as cash and materials, fixed assets and other assets, and sharing profits according to the proportion of investment amount to the equity of the invested enterprise.
(3) Different investment purposes
The purpose of short-term investment is to make full use of temporary surplus funds and use these funds to buy stocks and bonds that can be turned into monetary funds at any time, so as to obtain income higher than market interest rate in a short period of time. The purpose of long-term investment is to meet the needs of operation and financial management. For example, in order to ensure the supply of raw materials, enterprises buy and hold shares issued by a raw material company for a long time; Enterprises buy and hold stocks issued by customer companies or other companies for a long time to ensure the durability of their product sales; Or put the remaining assets in a unit that is beneficial to its long-term development.