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Determine whether the characteristics describe short-term investments or long-term investments.


taxed at a higher rate

more affected by

rapid market changes

carries the risk of

higher inflation

subject to more

transaction fees

incurs more annual

brokerage fees



Short term investment



Long term investment


Sagot :

Short-term investments characteristics  are:

  • More affected by rapid market changes.
  • Taxed at a higher rate.
  • Subject to more transaction fees.
  • Incurs more annual brokerage fees.

What are Long-Term Investments?

Others are:

Long-term investments characteristics  are:

  • Carries the risk of higher inflation.

Long-term investments are known to be a kind of assets that people or a firm intends to keep for a long period of time that is usually more than three years.

Note that Long-term investors usually take on a high degree of risk when one is said to be after higher returns.

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