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                           SHORT-TERM INVESTMENTS CO.


                            LIQUID ASSETS PORTFOLIO


                            PRIVATE INVESTMENT CLASS


                       Supplement dated October 18, 1996
                   to the Prospectus dated December 12, 1995,
                          as Supplemented June 7, 1996


 This Supplement replaces and incorporates the Supplement dated June 7, 1996.

          The minimum initial investment in the Class is $10,000.

The first sentence of the first paragraph under the caption "Investment 
Program - Investment Policies" on page 4 is revised to read in its entirety 
as follows:

         "The Portfolio may invest in a broad range of U.S. Government and
         foreign government obligations, taxable municipal securities, and bank
         and commercial instruments that may be available in the money
         markets."



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