Question

Based on what you have learned in the lesson and the assignment, write two or three sentences describing how short-term and long-term investing options differ and when each is more appropriate.

Answer 1

Short-term investment options include savings and checking accounts. They usually have low risk, but they also provide lower returns. They are more liquid investments, meaning that they can be sold or changed easily. Long-term investments can provide higher returns; however, they are often more risky, and they can have lower liquidity.

When you are likely to need cash soon, a short-term investment would be wise. When you have the time and resources to try for a higher return, a long-term investment would be a good choice.

Answer 2

Long –term investment                             

These are investments that you wish to have for a very long time. It usually last for more than a year.

Short-term investment

These are investment that you plan to keep for a short period of time. It usually short-term investments often last 6 months to 1 year.

 I think it depends on the trend. There are some investments that you can keep longer and there are some you can keep for a shorter time. If you wish to get an investment that can help you with your daily needs, you can try day trading. But if you wish to keep it longer, then look for business models that you think would last for a long time.