A short-term investment goal is one that will be accomplished within a period of 2 to 5 years.
Marketable securities, transitory investments, and other similar terms all refer to financial investments that can be quickly converted to cash, usually within five years. A lot of short-term investments are liquidated or turned into cash in just three to twelve months.
The assets side of the balance sheet contains information about short-term investments. Usually, the goal is to get quick returns on these. As a result, these are typically sold between 3 and 12 months after the closing date. The short-term goals of a person or an organization go hand in hand with short-term investments.
Due to the lack of a waiting period until the maturity of the investment, short-term investing gives the investor more freedom.
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