Final answer:
Held-to-maturity securities are investment securities that a company intends to hold until their maturity date. Examples include government bonds, corporate bonds, and municipal bonds.
Step-by-step explanation:
In the context of investment securities, held-to-maturity securities are those that a company intends to hold until their maturity date and collect the principal and interest payments. These securities are typically long-term bonds or other debt instruments that have fixed interest rates and scheduled repayment dates.
Examples of held-to-maturity securities include government bonds, corporate bonds, and municipal bonds. These securities are recorded on a company's balance sheet at their amortized cost, and any changes in their fair value do not impact the company's reported earnings.
It's important to note that the classification of an investment security as held-to-maturity depends on the company's intention at the time of purchase. If the company later decides to sell the security before its maturity, it would be reclassified as either available-for-sale or trading securities.