A typical short term investment is expected to grow for several months. If the investment is successful it can extend to a period of a few years, which is the ideal outcome for a short term investment. For an investment to become long term, the time periods are much longer — often decades.
Long term investments include real estate and cash, these slowly develop over much longer periods. But this isn’t necessarily a bad thing.
Because of the amount of time that long term investments occupy, they often leave room for many short-term investments. Examples of short term investments include individual stocks and mutual funds. If you know you need the money back in the short-term, the stock market is a good place to be.
It’s important to remember that the long term investment account differs largely from the short term investment account in that short term investments will most likely be sold, where as long term investments may never be sold.
Many creative companies hinge on maintaining the exclusive use of their intellectual properties (IPs). Being the only company that produces something from a certain IP is not only a financially viable way of doing business, but its also the law if that company owns the IP.
Its for this reason that upper management and policy makers should care deeply about the IPs that they hold. Its also why the latest trends in financing IP assets should be paid attention to. IP rights are not only valuable assets but can also be important sources of financing. The desire to enhance innovation is a important concern for creative companies, and access to financing is crucial for start-up companies.
Rights to the exclusive use of an IP can increases a company’s asset value, and understanding the value of the IP can have a knock on effect in making informed decisions in the future. This helps upper management to negotiate more effectively with other companies, and facilitate access to credit.