Available-For-Sale Security

"Available for sale" is a classification of securities that represents the middle ground between two other types. It includes debt and equity that a company could intend to hold a long time, but is able to sell earlier if they choose to.

The other two classifications are "held for trading," which are purchased with the goal to sell in the short term, and "held to maturity," which the investor plans to hold until it reaches its maturity date. These categories affect how the security shows up on an income statement and balance sheet. Usually the available-for-sale securities are recorded at fair value because they are considered short term.