Investments - INVESTMENTS Investments in Debt and Equity...

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Unformatted text preview: INVESTMENTS Investments in Debt and Equity Transactions Lesson Thirteen Investments z Debt securities are the debts of other businesses. They will pay us interest on a regular basis and repay principal at maturity. z Equity securities are the stocks that we buy as investments. INVESTMENTS z Trading Securities z Held-to-Maturity Securities z Available-for-Sale Securities INVESTMENTS z Trading Securities - Debt or Equity Securities- Those that we buy with the intention of reselling them when the cash is needed or when a gain is made. INVESTMENTS z Held-to-Maturity Securities -Can only be debt because stock doesnt mature INVESTMENTS z Available-for-Sale Securities - Debt or Equity Securities- Those that we dont plan to hold until - maturity or plan to sell quickly. TRADING SECURITIES z Because we plan to sell these securities at any moment, their market value is very important. At the end of each accounting cycle, we will prepare an adjusting entry. z The Unrealized Gain (Loss) will be recorded on the Income Statement....
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Investments - INVESTMENTS Investments in Debt and Equity...

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