One of the main advantages that short-term investments have is their potential for quick growth as they are only expected to last a couple of weeks to a few months. These types of investments allow a company to have more control over their money. On the downside, short-term investments carry a higher risk and have demonstrated a higher rate of fluctuation as compared to long-term investments (Mussi, 2007). An advantage of long-term investments is that they have the ability to "gain small amounts of money over a long period of time. The slow-but-steady pace of long-term investments allow for a much greater degree of stability and a much lower risk than short-term investments (Mussi, 2007). Long-term investments that benefit from this growth and stability include savings and retirement funds as these investments mature over the years. Because these types of investments take so long to mature, they may not be ideal for companies and individuals that need a high-yield return on investment in a short period of time (Mussi, 2007).

Short-term investments and long-term investments come in a variety of forms, however, both types are seen as an asset to a corporation....

While each has it's advantages and disadvantages, one must take careful consideration when deciding to invest in anything, regardless of the term.
References

The ASPIRA Association. (n.d.). Short-Term and Long-Term Investment Options: Facilitators

Manual. Retrieved 17 July 2012, from www.aspira.org/files/user/u1/Inv_Fac_M5_V3_FR.pdf

CNN Money. (2012). Investing your money basics. Retrieved 17 July 2012, from http://money.cnn.com/magazines/moneymag/money101/lesson4/index.htm

Long-term investments. (2012). Investopedia. Retrieved 17 July 2012, from http://www.investopedia.com/terms/l/longterminvestments.asp#axzz20vK110dQ

Mussi, J. (2007). Comparing short-term and long-term investments. Final Sense. Retrieved 17 July 2012, from http://www.finalsense.com/learning/investment/comparing_short_term.htm

Short-term investments. (2012). Investopedia. Retrieved 17 July 2012, from www.investopedia.com/terms/s/shorterminvestments.asp#axzz20vK110dQ

Short-term investments. (n.d.). Wikinvest. Retrieved 17 July 2012, from http://www.wikinvest.com/metric/Short_Term_Investments