ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A long-term investment usually means an investment period of one to three months. Stocks are insured against loss by most banks and credit unions. By automatically reinvesting dividends, you are buying additional shares and increasing your investment. Interest is the fee received for the use of money.

Detailed explanation-2: -What Are Long-Term Investments? A long-term investment is an account on the asset side of a company’s balance sheet that represents the company’s investments, including stocks, bonds, real estate, and cash. Long-term investments are assets that a company intends to hold for more than a year.

Detailed explanation-3: -Short-term investments are those you make for less than three years. If you have a longer time horizon – at least three to five years (and even longer is better) – you can look at investments such as stocks. Stocks offer the potential for much higher returns.

Detailed explanation-4: -Long-term investments are assets that an individual or company intends to hold for a period of more than three years. Instruments facilitating long-term investments include stocks, real estate, cash, etc.

Detailed explanation-5: -Investing Goals: Long-term investment goals typically take years or decades to reach and may include retirement and saving for college. Short-term investing goals may take months or a few years. Examples of short-term investing goals can include saving for a vacation, wedding or home improvement.