CFA Practice Question

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CFA Practice Question

Debt securities that are bought and held primarily for sale in the near term are classified as

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
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