Short term investments are investments that are suited for short term investing. There can be different understanding of short term investing but it is normal that investments for period till one year can be considered as short term investments.
Investment grade short-term bills (bonds) and money market investments meet the criteria of short term investment the best. Stocks or other risky investments aren’t suited for short term investment and are too risky. Short term investments have to maintain very low volatility and high credibility and most of the times also are safe investments.
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