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Short-term investments refer to financial instruments or assets that are easily convertible to cash within a short period, typically one year or less. These investments are characterized by their liquidity and low risk, making them ideal for investors looking to preserve capital or earn a quick return. Examples of short-term investments include money market funds, certificates of deposit (CDs), Treasury bills, and commercial paper. Investors often utilize short-term investments to park excess cash or funds temporarily while waiting for more lucrative investment opportunities.