What do you mean by short-term debt and long-term investment? Long-term investment in universal insurance and short-term debt risks liquidity. Long-term investment requires long-term stable funds, and short-term investment can use short-term funds. If short-term funds are used for long-term investment, it belongs to short-term debt and long-term investment.

what do you mean by short-term debt and long-term investment?

For an example in life, we all know that buying a house is a major expense for families. If you have a credit card with a limit of 5 million yuan, will you use it to buy a house? Think calmly before making a decision. On the one hand, once a credit card is used to buy a house, the credit card needs to be repaid every month, and the installment period is at most three years, which means that all the house purchases need to be paid off with interest within three years. On the other hand, the purchase of a house is for long-term residence. If the credit card is not paid, you can't sell the house immediately to pay the bill. Buying a house is a long-term investment. You can't use credit card as a short-term financing method. You should choose a long-term housing loan to raise funds. Therefore, after analysis, it is clear that you can't buy a house by credit card.

Of course, there are special circumstances. For example, when house prices are rising rapidly, some people borrow money to buy a house through consumer loans. The loan period of consumer loan is short, which is inconsistent with the service period of the house. The purpose of these people is not to hold real estate for a long time, but to buy low and sell high to get the difference. From this point of view, the term is consistent, but this practice is not allowed by national laws and regulations on the one hand, and its premise is that house prices must rise rapidly on the other hand. Once the price increase slows down or falls, there will be the risk of insolvency due to the inability to realize the house or the realization of the loss.

as can be seen from the above example, the duration of fund financing should match the duration of fund use, and long-term investment needs long-term and stable sources of funds, while short-term investment can use short-term sources of funds. If the short-term funds raised are used for long-term investment, it belongs to short-term debt and long-term investment.

short-term debt and long-term investment is a common phenomenon in listed companies, which increases the financial risk of the company.