English Lexicon

Short-Term Investment

/ʃɔrt tɜrm ɪnˈvɛst.mənt/
nounCEFR B2 (Upper)Top #1500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    An investment that is intended to be held for a short period of time, typically less than one year.

    "Investors often prefer short-term investments for quick returns."
  2. 2

    A financial strategy focused on assets that can be quickly converted into cash.

    "Short-term investments are ideal for those looking to maintain liquidity."

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Linguistic Origin & Historical Etymology

The term 'short-term investment' combines 'short-term', which originates from the early 20th century in financial contexts, and 'investment', derived from the Latin 'investire', meaning 'to clothe or put on'. Over time, 'investment' evolved to signify the allocation of resources for profit.

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