It’s the stage in which there is the mental encoding of memory takes place. The short-term memory has a limited capacity, which can be willingly illustrated by the simple expedient of trying to remember a list of random items. It is also is being processed at any point in time, and has been mentioned to as "the brain's Post-it note". It can be thought of as the ability to remember and process information at the same time. It holds a small amount of information.