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    Classifications for non-influential investments in securities

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    Identify and give explanations for three out of four types of classifications for non-influential investments in securities.

    © BrainMass Inc. brainmass.com October 10, 2019, 4:17 am ad1c9bdddf
    https://brainmass.com/business/valuing-securities/classifications-non-influential-investments-securities-454591

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    One of the main classifications of non-influential investments in securities is trading securities. Trading securities can be debt or equity securities, and are always considered short-term investments. Companies list trading securities as current assets on their balance sheet, and they are reported at their current market value. Companies who own trading securities must make regular adjustments to their market adjustment account for the current fair value of the security. This would be recorded as a gain or loss, depending on the market value of the trading security. The unrealized gain or loss (while the company still holds the trading security) then carries over to the ...

    Solution Summary

    The expert identifies and explain three out of four types of classifications for non-influential investments in securities.

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