Asked by
shadrack nyambi
on Oct 16, 2024Verified
Held-to-maturity securities are:
A) Always classified as Short-Term Investments.
B) Always classified as Long-Term Investments.
C) Debt securities that a company intends and is able to hold to maturity.
D) Equity securities that a company intends and is able to hold to maturity.
E) Equity securities where significant influence involved.
Held-to-Maturity Securities
Financial instruments in the form of debt that a corporation plans to retain until their maturity date.
Short-Term Investments
Financial assets that are expected to be converted into cash or sold within a year, such as stocks or bonds.
Long-Term Investments
Assets intended to be held for more than one year, including stocks, bonds, or real estate, to generate revenue or appreciate in value.
- Elucidate and differentiate among assorted investment vehicles (held-to-maturity, available-for-sale, trading securities).
Verified Answer
SH
Learning Objectives
- Elucidate and differentiate among assorted investment vehicles (held-to-maturity, available-for-sale, trading securities).