Certificate of Deposit

Archive for the ‘Short Term Investments’ Category

Question: Put these in order of liquidity?

Accounts receivable
Short-term investments
Equipment net of accum. depr.
Land

Two of them belongs to current assets and two to Property, plant, and equipment. Put them in order please.
Thanks

Answer: Short-term investments
Accounts receivable
Equipment net of accum. depr.
Land

Short & Long-Term Investments

Question: What is considered a long and short term investment?

1 year + for long term investment and anything less than a year is short term investing?

Answer: Yes, that is correct for tax purposes. However, it also depends entirely on the context:

for a day trader: long term is over a day and short term is an hour.
for a value-based investor, long term can be months, or several years, and short-term can days, or weeks.

In essence, it is merely a comparison of what is ‘average’ for a given investor type, and if the time spend holding the stock is above or below the average.

1.5 Bil Global Internet Users= Best Short Term Investments

Question: calculus relate to finance problem(easy)?

1.Sandeep purchases Canada Savings Bond(CSB) valued at $2500 earning simple interest at an annual interest rate of 1.65%. Assuming that the interest rate does not change for the next 1.5 yrs, how much have Sandeep’s CSB earned in interest during that time?

2. Ching decides to invest in a Guaranteed Investment Certificate (GIC) short term for 60 days earning simple interest at an annual interest rate of 2.25%. How much money must Ching invest if he hopes to have a maturity value of $20,000?

Answer: 1. How ofter is the annual interest compounded? monthly, quarterly, annually? I’m assuming not continuously because this sounds like CSB would like to keep some money.

2. Same question (except it’s probably compounded daily or weekly)

i’ll finish if you finish the question

Pt.3 – Richard Croft, “Passive versus Active Investing, The Debate” – Advocis – The Time Is Now 2010