ShortTERM FINANCING - Making the right choice regarding...

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Short-Term Financing Short-term investments is the ideal if you want to invest over a period that is short, they are investments for a year or less, and they most of the time refer to loans or to bonds. The loans that might be included are bridge loans or swing loans, which are methods of short term financing that should be paid back quicker on a longer term options. Cash manager are another form of short term investments which will allow you to get to your money when you need it while still affording it a high level of security. High interest makes cash manager a better option when you look at things on a day to day bases. Fixed term deposits are great for investors who want to protect their capital without minding locking their money away for a short time period, and unable to get to it.
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Unformatted text preview: Making the right choice regarding short term investments has to do with your tolerance for risk. Money market funds lets you invest in low risk government securities for instance treasury bills as well as commercial short term loans. Every company should compare according to their tolerance for risk. No one should put all their funds into money market or guaranteed investment contracts they should diversify their investment portfolio so that risks are balanced better. Reference: postversion=2008020715...
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This note was uploaded on 01/27/2010 for the course FIN 200 taught by Professor Bresett during the Spring '10 term at University of Arizona- Tucson.

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ShortTERM FINANCING - Making the right choice regarding...

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