Long term v short term purchases short term

Investment Bank, Stocks And Bonds, “balance sheet”, Inflation

Research from Composition:

Both short-term investments and long-term purchases have pros and cons. One of the main positive aspects that immediate investments have is all their potential for speedy growth as they are only expected to last a two or perhaps three weeks to a few a few months. These types of opportunities allow an organization to have more control over their money. On the downside, short-term investments carry a higher risk and possess demonstrated better pay of varying as compared to long lasting investments (Mussi, 2007).

A benefit of long term investments is that they have the ability to “gain small amounts involving over a long period of time. The slow-but-steady speed of long term investments allow for a much better degree of balance and a much lower risk than short-term assets (Mussi, 2007). Long-term opportunities that take advantage of this growth and steadiness include personal savings and retirement funds as these investments mature over the years. Mainly because these types of assets take such a long time to fully developed, they may not be ideal for companies and individuals that need a high-yield return on investment in a short period of time (Mussi, 2007).

Initial investments and long-term investments come in a number of forms, nevertheless , both types are seen while an asset to a corporation. Whilst each provides it’s pros and cons, one need to take consideration when selecting to invest in nearly anything, regardless of the term.

References

The ASPIRA Connection. (n. deb. ). Immediate and Long lasting Investment Options: Facilitators

Manual. Retrieved seventeen July 2012, from www.aspira.org/files/user/u1/Inv_Fac_M5_V3_FR.pdf

CNN Funds. (2012). Investment your money basics. Retrieved 18 July 2012, from http://money.cnn.com/magazines/moneymag/money101/lesson4/index.htm

Long-term opportunities. (2012). Investopedia. Retrieved seventeen July 2012, from http://www.investopedia.com/terms/l/longterminvestments.asp#axzz20vK110dQ

Mussi, M. (2007). Evaluating short-term and long-term opportunities. Final Feeling. Retrieved 17 July 2012, from http://www.finalsense.com/learning/investment/comparing_short_term.htm

Short-term investments. (2012). Investopedia. Retrieved seventeen July 2012, from www.investopedia.com/terms/s/shorterminvestments.asp#axzz20vK110dQ

Short-term purchases. (n. deb. ). Wikinvest. Retrieved 18 July 2012, from http://www.wikinvest.com/metric/Short_Term_Investments