Investments in debt and equity securities that a company has purchased to make a short-term profit are called ________.
A)held-to-maturity securities
B)trading securities
C)available-for-sale securities
D)speculative investments

Question

Quizplus · Accepted Answer

Trading securities are purchased with the intention of selling them in the short-term to make a profit. Held-to-maturity securities are purchased with the intention of holding them until maturity and earning interest. Available-for-sale securities are purchased without a specific intention to sell or hold until maturity. Speculative investments are high-risk investments made with the intention of making a profit, but with a high chance of losing money.

Investments in Debt and Equity Securities That a Company Has