What could be a characteristic of a securities held for resale?

Securities held for resale are typically characterized by their valuation at fair market value. This is essential because the purpose of holding these securities is to sell them in the short term or when market conditions are favorable. Valuing them at fair market value reflects their current worth on the market, allowing for more accurate financial statements. Fair market value provides stakeholders with relevant information regarding the potential returns on these securities if they are sold.

Holding securities at fair market value aligns with generally accepted accounting principles (GAAP), which require that financial instruments be reported at their current market value unless certain conditions are met. This practice ensures that financial statements provide a true representation of a company's financial position and performance. By marking securities to market, organizations can better assess their liquidity and overall financial health.

The other options describe characteristics that do not align with the nature of securities held for resale. For example, being intended to be kept indefinitely contradicts the premise of these securities, which are meant to be liquidated based on market conditions. Immediate liquidation is not a requirement and would depend on specific investment strategies, while stating that securities are not subject to market fluctuations misrepresents the inherent risk and volatility associated with investment activities.