- Debt and equity investments that are purchased with the intent of selling them within a short period of time (usually less than one year). Accounting standards necessitate that companies classify any investments in debt or equity securities when they are purchased. The investments can be classified as: held to maturity, held for trading or available for sale. Held-for-trading securities (or simply trading securities) are considered short-term assets, and their accounting is handled as such. Gains and losses resulting from changes in the investment's value are recorded as gains and losses on an income statement.
Held for trading securities include debt and equity instruments that are held for short periods of time, purchased with the intention of profiting from short-term price changes. They are purchased with the intention of selling them in the near term. These debt and equity investments are reported at fair value, and unrealized gains and/or losses are included in earnings.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Held To Maturity Security — Accounting standards necessitate that companies classify any investments in debt or equity securities when they are purchased. The investments can be classified as held to maturity, held for trading or available for sale. A held to maturity… … Investment dictionary
Available-For-Sale Security — A debt or equity security that is purchased with the intent of selling before it reaches maturity, or selling prior to a lengthy time period in the event the security does not have a maturity. Accounting standards necessitate that companies… … Investment dictionary
security — /si kyoor i tee/, n., pl. securities, adj. n. 1. freedom from danger, risk, etc.; safety. 2. freedom from care, anxiety, or doubt; well founded confidence. 3. something that secures or makes safe; protection; defense. 4. freedom from financial… … Universalium
Security (finance) — This article is about the negotiable instrument. For the legal right given to a creditor by a borrower, see Security interest. Securities Securities Bond … Wikipedia
Held — A reference to a long position in a security. The term held, in the investment context, refers to securities or assets owned by an investor or trader. It may also refer to a situation where a security is temporarily unavailable for trading. In… … Investment dictionary
held-to-maturity — ( HTM) One of three defined categories established in FAS 115 for the classification of financial instruments held as assets on the books of an investor. HTM securities are those the investor intends to hold to maturity and is able to hold to… … Financial and business terms
Held At The Opening — A situation in which a security is restricted from trading when the stock exchange opens for the day. Stock exchanges can halt trading on securities at any time, but trading usually resumes in under an hour. If the halt occurs before the… … Investment dictionary
Common Foreign and Security Policy — This article deals with the workings of European Union foreign policy. For the relations between the European Union and third countries, see Foreign relations of the European Union. European Union This a … Wikipedia
Social Security debate (United States) — This article concerns proposals to change the Social Security system in the United States. Social Security is a social insurance program officially called Old Age, Survivors, and Disability Insurance (OASDI), in reference to its three components … Wikipedia
Timeline for September following the September 11 attacks — All times, except where otherwise noted, in Eastern Daylight Time (EDT). This is four hours (instead of five) before UTC because of daylight saving time. September, 2001 Wednesday, September 12 *2:30 AM, CBS reports that a car packed with… … Wikipedia