Investments can be classified as:

Question

Quizplus · Accepted Answer

All of these options are valid classifications for investments. 
A) Held-for-trading securities are investments that are bought for the purpose of selling in the near term, with the intention of generating profits from short-term fluctuations in price.
B) Held-to-maturity debt securities are investments that the holder intends to keep until maturity, earning interest income along the way.
C) Available-for-sale debt securities are investments that are not held to maturity, but instead can be sold when the holder chooses. The value of these securities is reflected on the balance sheet at fair value.
D) Available-for-sale equity securities are similar to available-for-sale debt securities, except that they represent ownership stakes in companies rather than debt obligations. 
All of these classifications are important for financial reporting and analysis purposes.

Investments Can Be Classified As