Short-Term Investments Definition
Short-Term Investments in the current assets section of a company's balance sheet mean accounts that include investments that will expire within one year. These accounts contain assets that can be liquidated quickly.
Short-Term Investments in an individual's life refer to savings that are deposited into investments maturing in a short time, as passbook savings accounts or money-market funds as well as CD’s and T-bills. These are relatively safe because they are guaranteed by the government. Disadvantages of short-term investments are that they pay a low rate of interest and may lose value after adjustments for inflation.