Which type of securities are classified as Type IV?

Type IV securities specifically refer to small business-related investment-grade securities. The classification system used for securities often categorizes them based on their risk profiles, issuers, and market characteristics. Type IV securities are particularly designated for small businesses that meet certain criteria regarding credit quality, which makes them eligible for investment-grade classification. This classification is significant as it indicates a level of risk associated with these investments, making them appealing to investors who are looking for opportunities in supporting smaller enterprises while still maintaining a degree of reliability in terms of credit quality.

The other options represent different categories of securities. Corporate bonds with low credit ratings typically fall into a higher-risk category, which does not align with the investment-grade classification of Type IV. U.S. government bonds are classified differently, often regarded as very low-risk securities due to the backing of the federal government. Real estate investment trusts, while also appealing to investors, have distinct characteristics and classifications based on their underlying assets and investment structures. Therefore, the correct answer highlights the specific focus on small businesses and their qualifying investment-grade securities, which differentiates them from the other types listed.