An investor holds 5% of the outstanding stock of an investee.Securities that the investor company does not intend to sell in the near future are called ________.
A) trading securities
B) options
C) available-for-sale securities
D) equity method securities

Question

Quizplus · Accepted Answer

Available-for-sale securities are investments that are not intended to be sold in the near future, which matches the description given in the question. Trading securities refer to investments that are actively bought and sold for profit. Options refer to the right to buy or sell a security at a specified price in the future. Equity method securities are investments in which the investor has significant influence over the investee and accounts for the investment using the equity method.

An Investor Holds 5% of the Outstanding Stock of an Investee.Securities