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 didn’t intend on holding on to the security in the not too distant future....
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This note was uploaded on 08/14/2011 for the course ACCT 423 taught by Professor R.becksted during the Spring '09 term at University of Phoenix.
- Spring '09
- Financial Accounting