Final answer:
Both debt and equity securities can be categorized as trading securities, which are intended for short-term profit through active buying and selling in the financial markets.
Step-by-step explanation:
The statement is True: Both debt securities and equity securities can indeed be categorized as trading securities. Trading securities are a type of investment that is made with the intention of reselling them in the short term to profit from price fluctuations.
Equity securities, such as stocks, represent ownership in a corporation and can be bought and sold on the stock market, which is highly competitive with a large number of participants and available information. Debt securities, like corporate bonds or government bonds, can also be traded on the financial markets. These markets are where various investors, including banks, buy securities with the expectation of earning a return through interest or price appreciation.