Types of short-term investments

Answer 1

A handful of ways to short - term invest are using: stocks, 3 and 6 month CD's, options, and corporate investments ( where you invest money into the company and they promise to pay you back in an allotted amount of time. ). some of these ways are better than others. For example, short - term CD's are great for locking in a predetermined percentage for your money, but if you invest above your means or need emergency money, you cannot reap the full benefits if you need to remove funds from the CD, which you must pay a penalty that you agreed to before the CD was issued. other investments are better set up, but not guaranteed. Investing in stocks and options are a good way to go, if your more comfortable with your money and are able to lose it in a worst case scenario. Some companies have better trends which are helpful for short - term investing. An oil business, for example would be extremely volatile, in current conditions. This makes your time in the market smaller, because the stock has a greater ability to move up and down, giving you a better chance for profits or losses in a shorter amount of time. Choose wisely, if you are not financially inclined learn how to be a smart investor and be your own broker, or go to a brokerage and IF!! you know what to invest in tell them, because they will tell you which is best for you, but it will make them the most money.