Substitute the values into the inequality:
-1 - 1 > 0
-2 > 0
False
Short-term investments characteristics are:
- More affected by rapid market changes.
- Taxed at a higher rate.
- Subject to more transaction fees.
- Incurs more annual brokerage fees.
<h3>What are Long-Term Investments?</h3>
Others are:
Long-term investments characteristics are:
- Carries the risk of higher inflation.
Long-term investments are known to be a kind of assets that people or a firm intends to keep for a long period of time that is usually more than three years.
Note that Long-term investors usually take on a high degree of risk when one is said to be after higher returns.
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5^8 / 5^12 = 5^(8-12) = 5^-4 = 1/5^4
