Investments that are typically held for short periods of time and sold by the company in the expectation of a profit on the short-term differences in price are classified as

A) available-for-sale securities
B) trading securities
C) held-to-maturity securities
D) marketable securities

Trading securities are investments that are intended to be sold for a profit in the short-term based on fluctuations in market price. Available-for-sale securities and held-to-maturity securities are generally held for longer periods of time and are not actively traded for short-term gains. Marketable securities is a broader term that can include any type of investment that is easily bought and sold in a liquid market.