Short-Term Investments


DEFINITION of 'Short-Term Investments'

An account in the current assets section of a company's balance sheet. This account contains any investments that a company has made that will expire within one year. For the most part, these accounts contain stocks and bonds that can be liquidated fairly quickly.


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BREAKING DOWN 'Short-Term Investments'

Most companies in a strong cash position have a short-term investments account on the balance sheet. This means that a company can afford to invest excess cash in stocks and bonds to earn higher interest than what would be earned from a normal savings account.

Microsoft, which is always in a strong cash position, had short-term investments totaling approximately $32 billion at the end of 2005.

  1. Cash

    Legal tender or coins that can be used to exchange goods, debt ...
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    A financial statement that summarizes a company's assets, liabilities ...
  3. Current Assets

    A balance sheet account that represents the value of all assets ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  5. Reintermediation

    1. Individuals withdrawing funds from nonbank investments such ...
  6. Cash And Cash Equivalents - CCE

    An item on the balance sheet that reports the value of a company's ...
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