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Short-term Investments

As we delve into the world of finance, it is crucial to understand the concept of stocks and other liquid securities. These are financial instruments that represent ownership in a company and can easily be converted into cash, making them highly tradable. Unlike fixed assets, which are not easily converted into cash, stocks and other liquid securities are a valuable asset for investors. They offer the potential for capital appreciation and dividends, but also carry the risk of loss. It is important to carefully analyze a company's financial health before investing in their stocks. And remember, diversifying your portfolio is key to mitigating risk when it comes to these liquid assets.

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