SHORT TERM INVESTMENTS CO /TX/
497, 1998-05-29
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                           SHORT-TERM INVESTMENTS CO.

                              CASH MANAGEMENT CLASS
                                     of the
                             LIQUID ASSETS PORTFOLIO


                          Supplement dated May 29, 1998
                                to the Prospectus
                             dated December 17, 1997



Effective June 1, 1998, purchase orders and redemption requests received by 
A I M Fund Services, Inc., the Transfer Agent of the Portfolio, after 5:00 p.m.
Eastern Time on a business day of the Portfolio will be effected at the net
asset value determined on the next business day.

Effective June 1, 1998, (1) the net asset value per share of the Portfolio will
be determined daily as of 5:00 p.m. Eastern Time on each business day of the
Portfolio; (2) dividends from the net income of the Portfolio will be declared
daily to shareholders of record of the Class of the Portfolio immediately after
5:00 p.m. Eastern Time; and (3) information concerning the amount of dividends
declared on any particular day will normally be available by 6:00 p.m. Eastern
Time on that day.

Any request for correction to a transaction of Portfolio shares must be
submitted in writing to the Transfer Agent. The Transfer Agent reserves the
right to reject any such request. When a correction results in a dividend
adjustment, the institution must agree in writing to reimburse the Portfolio for
any loss resulting from the correction. Failure to deliver purchase proceeds on
the requested settlement date may result in a claim against the institution for
an amount equal to the overdraft charge incurred by the Portfolio.







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