ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Differences Between Long-Term & Short-Term Investing Long-term is generally considered to be 10 years or more, while short-term is generally three years or less. Market Risk: Market risk is the possibility that assets exposed to the market may lose value.

Detailed explanation-2: -In general, you only want to play the stock market when you’re investing for a long-term goal. And even if your deadline for using the money is flexible, you need to come to terms with the fact that you’re taking on more risk and might lose money.

Detailed explanation-3: -What is long-term investing? Generally, any asset you hold for over five years is considered a long-term investment and you usually distribute your money across a range of assets to build a diverse investment portfolio.

Detailed explanation-4: -Short-term investments, also known as marketable securities or temporary investments, are financial investments that can easily be converted to cash, typically within 5 years. Short-term investments can also refer to the holdings a company owns but intends to sell within a year.