ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Equities usually make periodic payments called dividends and are considered to be long term securities because they have no maturity date.

Detailed explanation-2: -Long-Term Investments These investments can include everything from equity and debt securities to real estate, and they are included in the non-current asset section of the balance sheet.

Detailed explanation-3: -Maturity dates Equity securities do not have a maturity date whereas debt securities typically have a maturity date.

Detailed explanation-4: -The term long-term equity anticipation securities (LEAPS) refers to publicly traded options contracts with expiration dates that are longer than one year, and typically up to three years from issue.

Detailed explanation-5: -The equity market is highly volatile, especially in the short-term. Thus, investment gurus recommend sticking to your equity investment for as long as possible. Investing in equity mutual funds or stocks with the mindset of following them through to the maximum tenure possible is known as long-term investment approach.