- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 10. Intercorporate Investments
- Subject 2. Investments in Financial Assets
CFA Practice Question
Debt securities that are bought and held primarily for sale in the near term are classified as
B. held-to-maturity.
C. trading.
A. available-for-sale.
B. held-to-maturity.
C. trading.
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| akirchner1 | I initially picked A) available for sale, but I now see that the phrase "held primarily for sale" more accurately reflects C) held for trading |
| Felio | The key words here are ''held primarily for sale'' and ''near term''. While ''held primarily for sale'' characterizes both trading and available-for-sale securities, the ''near term'' is only for trading securities. All other securities that you don't intend to sell in the near-term (or you don't intend to sell and repurchase very frequently) should be classified as available-for-sale |