Asked by Dharmesh Kharel on Jun 29, 2024
Verified
Investments in bonds that management intends to hold to maturity are called trading securities.
Trading Securities
Financial assets such as stocks or bonds, purchased with the intention of selling them in the short term to profit from price fluctuations.
- Recognize the distinctive features and necessary reports for diverse securities.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
False
Explanation :
Investments in bonds that management intends to hold to maturity are called held-to-maturity securities, not trading securities. Trading securities are bought and held primarily for the purpose of selling them in the short-term to make a profit.
Learning Objectives
- Recognize the distinctive features and necessary reports for diverse securities.
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