Final answer:
Investment securities are reported on a balance sheet at fair value for Trading Securities and Securities Available-For-Sale. Correct option is a.
Step-by-step explanation:
Investment securities are reported on a balance sheet at fair value for Trading Securities and Securities Available-For-Sale. This means that both types of securities are reported at their current market value, which may fluctuate over time.
Trading Securities are securities that are bought with the intention of selling them in the short term to make a profit. For example, a trader may purchase stock in a company and sell it a few days later when the price increases.
Securities Available-For-Sale are securities that are not intended for immediate sale but may be sold in the future. For example, a company may hold a bond that it plans to sell in a few years when the interest rates are more favorable.