Categories of securities
For purposes of valuation and reporting at a financial statement date, companies classify debt and stock investments into three categories:
- Trading securities are bought and held primarily for sale in the near term to generate income on short-term price differences.
- Available-for-sale securities are held with intent of selling them sometime in the future.
- Held-to-maturity securities are debt securities that the investor has the intent and ability to hold to maturity.
Category: Accounting & Auditing
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