Common stock is considered a short-term security because it has no maturity date and a long-term security is one with a maturity date of more than one year.

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Common stock is actually considered a long-term security because it represents ownership in a company and has no maturity date. Short-term securities typically refer to investments with a maturity date of less than one year, such as Treasury bills or certificates of deposit.

Common Stock Is Considered a Short-Term Security Because It Has