The investment category for which the investor's "positive intent and ability to hold" is important is:

Question

Quizplus · Accepted Answer

Securities classified as held to maturity are intended to be held until maturity and not actively traded. Therefore, the investor's positive intent and ability to hold the securities are important factors in determining their proper classification. The other investment categories - trading securities and securities available for sale - are not intended to be held until maturity and are actively traded. Securities reported under the equity method represent an ownership interest in another company and are accounted for based on the investor's degree of influence over the investee's operations, so positive intent and ability to hold are not as relevant here.

The Investment Category for Which the Investor's "Positive Intent and Ability