30. Trading investments include A) debt and equity securities that the investor

Question

30. Trading investments include A) debt and equity securities that the investor expects to hold longer than one year or debt or equity securities that are not readily marketable B) investments in debt and equity securities that are highly liquid and that the investor intends to hold until they mature C) investments in debt securities that the investor intends to hold until they mature D) equity securities in which the investor holds less than 20 percent of the voting stock and that the investor plans to sell in the near future 31. Which of the following is an example of a held-to-maturity investment? A) machinery B) bond C) land D) equity investment

Explanation / Answer

30) option d

A debt security or an equity security in which the investor holds less than 20% of the voting stock and that the investor plans to sell in the very near future

31)option b

Bond

Only debt securities can be classified as held to maturity because they have a definite maturity. Equity securities on the other hand have no maturity and hence they cannot be classified as held to maturity.

30) option d

A debt security or an equity security in which the investor holds less than 20% of the voting stock and that the investor plans to sell in the very near future

31)option b

Bond

Only debt securities can be classified as held to maturity because they have a definite maturity. Equity securities on the other hand have no maturity and hence they cannot be classified as held to maturity.

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