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Unformatted text preview: convertible debt, and corporate bonds. There are three categories that debt securities are grouped into: held-to-maturity a security that has positive intent and the ability to hold to maturity; trading securities bought and held to be sold at a profit in the near term; and available-for-sale securities not classified as held-to-maturity or trading securities. A company would be influenced to buy equity securities if it had a long-term use of the asset. Similarly, a company would opt for debt investments if they didnt intend on holding on to the security in the not too distant future....
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- Spring '09
- Financial Accounting