ipl-logo

Advantages Of Short-Term Investment

2176 Words9 Pages
bulb-icon

Recommended: Disadvantage of short term investment

papWhat is short term investment?
To invest is to allocate money in the expectation of some benefit in the future. Clocks of our minds start ticking on hearing of investment. Where to invest? How to invest? How much to invest? What will be the results? Is it safe to invest? These are just few of the many questions which pile up in our brains when we think of securing capital. Investment altogether is a necessity for a financially secured future. It is basically of two types - long term and short term. When talking about short term investment, it is designed to provide considerable returns in a short span of time which can be a year or even few months. It is more focused to meet the expected near future expenses. People who are inclined towards short-term investment are not interested in waiting for years in order to get their money multiplied. With short term investments, one …show more content…

Flexibility
One of the big advantages of short-term investing is that you have some flexibility. You do not have to tie up your money for an extended period of time with this type of investment, as is the case, for example, for the many people who purchase a corporate bond that has a maturity of somewhere between 10 and 30 years. With this investment you have to keep it for a long time before it matures. You could sell it in the secondary market, but you may not get what it is worth.
2. Returns
Another advantage of short-term investing is that you can get substantial returns. With this type of investment, you can often realize great returns after only a very short amount of time. Then you sell the security to lock in your profit and look for something else to put money into.
3. Tangible Results
Many investors like to be able to see some type of tangible results in their investing. With long-term investment, it might take a great deal of time before you see any results, which can be discouraging.
Disadvantages of short term investment: -
1. Low

Show More
Related
1144 Words | 5 Pages

Peter Choi Professor Gadarian PSC 121: American National Government 1 October 2015 Congressman Billy Long of Missouri In 2010, Missouri’s 7th Congressional District elected Republican Representative Billy Long to office. Representative Long triumphed over his Democratic opponent by receiving 63% of the popular vote, which translates to 141,010 votes. Interestingly, the Republican primary election in 2010 was more closely contested than the general election. Similar election results occurred in 2012 as well.

Read More
498 Words | 2 Pages

The minimum acceptable rate of return is taken to be

Read More
1681 Words | 7 Pages

The capital business sector is the business sector for securities, where organizations and the legislature can raise long haul stores. The capital business sector incorporates the stock exchange what 's more, the security market. Money related controllers, for example, the U.S. Securities and Exchange Commission, direct the capital markets in their individual nations to guarantee that financial specialists are ensured against extortion. The capital markets comprise of the essential business sector, where new issues are appropriate to financial specialists, and the optional business sector, where existing securities are exchanged. (n.d.).

Read More
532 Words | 3 Pages

Coal mining in the U.S. provides many jobs and is the backbone of many incomes. Longwall coal mining is one form of underground coal mining. In fact, it is the most productive form, yet the safest. The machine used is highly powerful and efficient. Pros for this type of mining are followed by cons as well.

Read More
1449 Words | 6 Pages

Sports are something most Americans can relate to; many of us played some type of sport as a kid and some of us are die-hard fans. Sports have developed with us as a society and have become an interwoven piece of our culture and their effects can be seen in many cities countrywide. The facilities where these teams play can become a centerpiece of the local community and the teams themselves can bring people from all walks of life together in search of one mutual goal, for their team to win. The controversy arises when it comes to how many professional stadiums are routinely being funded and whether taxpayers should foot the multi-billion-dollar bill. This has not always been a controversy, however, as prior to 1953 stadiums were largely funded

Read More
828 Words | 4 Pages

It is possible on your part to manage your investment daily through the help of internet. When you view the site, you see many investment options. You can just manage it in a few clicks of mouse. Just login every now and then and follow the EquiTrend system. You can even save a lot of

Read More
2178 Words | 9 Pages

A risky investment if the homeowners were unable to repay the mortgage. This proved to be the case when the US economy and housing market crashed in 2008 and Lehman Brothers had billions of dollars invested in the subprime mortgage market and homeowners had no money to repay the

Read More
1701 Words | 7 Pages

In addition, setting of short term goals helps motivate the employees and instills in them the discipline necessary to achieve those goals. 9. Organization Culture Mattel claims to provide all its employees the opportunity to thrive, lead and dare in their work but according to a former Mattel executive: “It has always been a place where people are pitted against each other. It’s a shark pond. You throw people in and see if they can swim fast enough to stay

Read More
789 Words | 4 Pages

There are four major decision-making models- rational, bounded rationality, incremental and garbage can models. In the following, pros and cons of each model will be discussed and explain why Incremental and Garbage Can Models can best describe the decision made during the Cuban Missile Crisis. Rational model is a cognitive process, which the decision-makers run through rational steps. The steps refer to definition of problems, identification and evaluation of alternative policies, implementation of the best policies among all and finally monitoring of effects, ran through a unitary decision-maker (Taylor, 1998). Theoretically, the model can search for the best solution to the problem based on the comprehensive consideration.

Read More
1129 Words | 5 Pages

Outline the similarities and differences between the Single Index Model (SIM) and the Capital Asset Pricing Model (CAPM). Justify which of the two models makes a better assessment of return of a security (25 marks). To reduce a firm’s specific risk or residual risk a portfolio should have negative covariance or rather it should have no variance at all, for large portfolios however calculating variance requires greater and sophisticated computing power. As such, Index models greatly decrease the computations needed to calculate the optimum portfolio. The use of such Index models also eliminates illogical or rather absurd results.

Read More
1221 Words | 5 Pages

The Big Short Management and Leadership Theoretical Component Management – The process of dealing with or controlling things or people. Leadership - The action of leading a group of people or an organization, or the ability to do this. Management and Leadership are two very different things. “A manager is appointed in a position of authority which enables him to insist on people doing as he/she instructs.

Read More
1149 Words | 5 Pages

Pros of

Read More
1217 Words | 5 Pages

Outline the similarities and differences between the Single Index Model (SIM) and the Capital Asset Pricing Model (CAPM). Justify which of the two models makes a better assessment of return of a security (25 marks). To reduce a firm’s specific risk or residual risk a portfolio should have negative covariance or rather it should have no variance at all, for large portfolios however calculating variance requires greater and sophisticated computing power. As such, Index models greatly decrease the computations needed to calculate the optimum portfolio. The use of such Index models also eliminates illogical or rather absurd results.

Read More
737 Words | 3 Pages

To make profit, the investors should think like business owners instead of thinking like a homeowner and paying more than the property is worth for. If you fall in love with a property, then you may fail to make the right decision, and in turn, you may lose the opportunity of great income. It is advisable that you do enough research to determine the right value of the properties. 7. Forgetting time and money rule

Read More
856 Words | 4 Pages

By investing your money, you are getting your money to generate more money by earning interest

Read More

More about Advantages Of Short-Term Investment

Related Topics

Open Document