Short-term investments,which may be classified as current assets,may be divided into held-to-maturity securities,trading securities and available-for-sale securities.

Question

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Short-term investments can be classified into these three categories of securities. Held-to-maturity securities are investments in debt securities that a company intends to hold until maturity. Trading securities are investments in debt and equity securities that are actively traded and bought and sold frequently. Available-for-sale securities are investments in debt and equity securities that are not actively traded and are held for possible sale in the future.

Short-Term Investments,which May Be Classified as Current Assets,may Be Divided