Long-Term Investments

Loading the player...

What are 'Long-Term Investments'

An account on the asset side of a company's balance sheet that represents the investments that a company intends to hold for more than a year. They may include stocks, bonds, real estate and cash.

BREAKING DOWN 'Long-Term Investments'

The long-term investments account differs largely from the short-term investments account in that the short-term investments will most likely be sold, whereas the long-term investments may never be sold.

A common form of this type of investing occurs when company A invests largely in company B and gains significant influence over company B without having a majority of the voting shares. In this case, the purchase price would be shown as a long-term investment.

RELATED TERMS
  1. Capital Investment Analysis

    A budgeting procedure that companies and government agencies ...
  2. Short-Term Debt

    An account shown in the current liabilities portion of a company's ...
  3. Trading Account

    1. An account similar to a traditional bank account, holding ...
  4. Conservative Growth

    An investment strategy that aims to grow invested capital over ...
  5. Management Investment Company

    A formal name for a company that sells and manages a portfolio ...
  6. Insurance Bond

    An investment instrument that is offered by life insurance companies. ...
Related Articles
  1. Home & Auto

    Flipping Houses: Is It Better Than Buy and Hold?

    Real estate investors can flip a property or use it for cash flow. Find out which will work in your neck of the woods.
  2. Bonds & Fixed Income

    Safety and Income: Real Assets - Gold, Real Estate and Collectibles

    By Brian PerryThe term "real assets" refers to a broad category of investment options that are characterized by the fact that they are tangible (as opposed to stocks, bonds, and CDs which are ...
  3. Investing Basics

    What's an Investment?

    An investment is an asset purchased with the expectation that it will generate income or appreciate over time. In finance, common investments include stocks, bonds, real estate, mutual funds ...
  4. Budgeting

    Is Now A Good Time To Invest In Real Estate?

    From carrying costs to investment risk, there's a lot to consider before you invest in real estate.
  5. Investing Basics

    Defining The 3 Types Of Investments

    The first step to being a successful investor is knowing what is and isn't an investment.
  6. Retirement

    Retirement Planning For 20-Somethings: Choosing And Managing Your Investments

    The types of assets in which your savings are invested will significantly impact your return on investments and, consequently, the amount available to finance your retirement. As a result, a ...
  7. Financial Advisors

    Why Real Estate is a Good Fit for Older Investors

    Real estate investing can be a good fit for older investors. Here are three reasons why.
  8. Home & Auto

    Exploring Real Estate Investments

    Discover how owning properties can give you a roof over your head or a check in your pocket.
  9. Markets

    Fundamental Analysis: The Balance Sheet

    By Ben McClureInvestors often overlook the balance sheet. Assets and liabilities aren't nearly as sexy as revenue and earnings. While earnings are important, they don't tell the whole story. ...
  10. Mutual Funds & ETFs

    Alternative Investments: How The Game Has Changed for Retail Investors

    Learn how retail investors are using liquid alternative investments to diversify their portfolios. These funds are not correlated with stocks and bonds.
RELATED FAQS
  1. What is the difference between a balance sheet and a cash flow statement?

    Understand the difference between a balance sheet and an income statement. Learn the three components of each of the financial ... Read Answer >>
  2. How should investors interpret accounts receivable information on a company's balance ...

    Analyze accounts receivable information on a company's balance sheet carefully. Receivables offer confidence of future cash ... Read Answer >>
  3. How much of an institutional pension fund's portfolio is typically investing in real ...

    Learn what percentage of assets institutional pensions typically allocate to real estate investments. Read Answer >>
  4. How can I use cash flow investing activities to determine if a company is growing?

    Learn how to use the sources and uses of a company's cash flow from investing activities to determine whether that company ... Read Answer >>
  5. All of the following statements are true with respect to the various ways that equity ...

    The correct answer is: b) Global investing is the proper definition for investing in stocks from all over the world. International ... Read Answer >>
  6. Where do companies keep their cash?

    If you have ever looked over a company's balance sheet, you have no doubt noticed the first account under the current asset ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center