Short Term
 |
Definition of 'Short Term'1. In general, holding an asset for short period of time.2. In accounting, an asset expected to be converted into cash in the next year, or a liability coming due in the next year. Also known as current assets and liabilities. 3. For investing, a security that matures in one year or less. 4. For taxes, a holding period of less that one year. |
 |
Investopedia explains 'Short Term'As you can see from above, the exact definition depends on the context. However, in general, you can think of short term as within the next year.The determination can be very important for taxes. Assets held short-term are generally taxed at a higher rate than assets held for more than a year. |
Related Definitions
Articles Of Interest
-
Do Your Investments Have Short-Term Health?
If a company is strong enough to survive tough times, it is more likely to provide long-term value. -
Long-Term Investing: Hot Or Not?
Forget the latest craze - you're more likely to succeed with a buy-and-hold strategy. -
3 Things Investors Can Learn From Traders
By incorporating some of the best practices of top traders, investors can greatly improve portfolio returns. -
Capital Gains Tax 101
Find out how taxes are applied to your investment returns and how you can reduce your tax burden. -
10 Tips For The Successful Long-Term Investor
These guiding principles will help you avoid common folly during the decision-making process. -
I have a short period of time (1 year or less) during which I will have money to invest. What are my investment options?
If you only have a short period of time in which to invest your money (i.e. less than one year), there are several investment options you should consider outside of the typical checking and savings ... -
Do long-term bonds have a greater interest rate risk than short-term bonds?
The answer to this question lies in the fixed income nature of bonds and debentures, often referred to together simply as "bonds". When an investor purchases a given corporate bond, he or she ... -
A Day In The Life Of A Public Accountant
Here's an inside look at the workdays of two experienced CPAs, to give you an idea of what it might be like to pursue a career as a public accountant. -
Earnings Guidance: Can It Accurately Predict The Future?
Explore the controversies surrounding companies commenting on their forward-looking expectations. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up".
Free Annual Reports
