Equity securities are always classified as long-term investments.

Equity Securities

Financial instruments that signify an ownership position in a publicly-traded corporation, such as stocks.

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, including stocks, bonds, real estate, and other securities.

Acquire knowledge about the principles and reasoning applied in defining investments as short-term or long-term.

Verified Answer

Muhammad HarisNov 15, 2024

Final Answer:

Learning Objectives

Acquire knowledge about the principles and reasoning applied in defining investments as short-term or long-term.