Which of the following is the best description of investments in available-for-sale securities?

Multiple Choice

• Investments in bonds that management intends to hold to maturity.

• Investments in bonds that are held primarily for the purpose of selling them in the near future.

• Investments in more than fifty percent of the voting stock of another company.

• Investments in debt securities that are passive investments other than trading securities and held-to-maturity investments and are accounted for under the fair value method.