Describe the Sale of Trading Security Investments.

Q: Why are held-to-maturity securities treated differently from other investment securities?

A:

Q: Trade, Debt and Equity are types of securities that are being considered when investing, which…

A: Investors can invest in different securities such as equity, debenture, Preference shares,…

Q: Explain how to Adjust Trading Security Investments to Fair Value.

A:

Q: When will investors make contact with their brokers to purchase or sell securities?

A: Securities: Securities are financial instruments that trade on the stock exchange. These securities…

Q: here can I find the information on Hybrid Securities? Is this a form of available-for-sale…

A: Step 1 Securities are a financial instrument used by the companies to raise capital. One of the many…

Q: What is Hedging Securities? Explain.

A: Hedging is a strategy where investors try to minimize the risk of loss on his portfolio by using…

Q: Define Trading securities.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: What is a private placement of securities?

A: Definition:   Debt securities: The financial instruments which are bought by investors, or…

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: What are the two important differences between trading securities and HTM investments?

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: State the purposes for which the securities premium reserve can be utilised.

A: Securities premium:Securities premium is the gain earned by the company, by issuing a share of a…

Q: Methods/instruments that banks use to hedge the risks pertaining trading securitie

A: Hedging is the process of risk management through which an investor mitigated and reduce its risks…

Q: What role do marketable securities play in current asset management?

A: Answer: The management of current assets has acquired a distinctive positive for marketable…

Q: Describe the Procedures used to determine the rate of return internal to nonsimple investments?

A: Procedure to compute the rate of return internal to non-simple investmentIt is an investment for…

Q: Identify the major derivative securities used to hedge against risk.

A: Answer: Usually, the primary aim of derivative securities trading is to hedge risk against the…

Q: Briefly explain the role of underwriters in the issuance of securities.

A: An underwriter is referred to as the party, which used to evaluate as well as assume that another…

Q: Describe disclosure requirements for derivatives and risk.

A: As per FAS 161- Please see below : Disclosures to be made in the footnotes for derivatives- An…

Q: Differentiate between marketable securities held for operating (transactions) purposes and…

A: Marketable securities are short-term liquid Assets that can be liquidated to cash quickly. These…

Q: is a method of evaluating securities by iden

A: Explanation : Technical analysis can be understood as the way of appraising commodities that…

Q: Explain Important Terms Used in the Market for CMOs and Derivative Securities?

A: CMO (Collateralised Mortgage Obligation): The obligation to repayment ensured by the mortgage to be…

Q: Explain how to Adjust Equity Investments to Fair Value.

A: Fair value method is used when a company buys stock of another company but the ownership stake is…

Q: Why are held-to-maturity investments applicable only todebt securities?

A:

Q: determine the expected return for securities

A: Return on security is the difference in Value at the time of maturity and cost of investment. T-Bill…

Q: Determine appropriate hedging and risk management strategies using a mix of underlying and…

A: Derivatives are financial instruments whose values are derived from other assets such as stocks,…

Q: Define Available-for-Sale Securities

A: Available for sale securities are treated as a current asset and shown at fair value on balance…

Q: In discussing how to value and report investment securities, your text also talks about trading…

A: Investment in securities made by the management for the objective of utilizing their idle cash in…

Q: iscuss  the inherent risks of Madoff Investment Securities

A: Madoff Investment Securities was run by Bernard Madoff. In fact it was one of the largest Ponzi…

Q: In which of the following markets "new issues" of long term securities are bought and sold?

A: In foreign exchange market, currencies are bought and sold. In secondary market, buying and selling…

Q: What is marketable securities?

A: Balance sheet has different components. On the basis of liquidity, cash and cash equivalents are the…

Q: Describe financial instruments and investment derivatives,

A: Financial instrument: A financial instrument is a monetary agreement among two parties, which can be…

Q: How are gains and losses on Available for Sale (AFS) securities recorded?

A: Available-for-sale (AFS) securities: The category of passive investments which are held as idle…

Q: What is the definition of hedging securities? Explain.

A: Introduction:Hedging is a strategy in which investors attempt to reduce the risk of loss on their…

Q: When are losses in noncurrent security investments recognized?

A: Noncurrent security investments are held for more than 1 year.

Q: What are financial securities?

A: Financial security can be defined as-“An instrument issued by companies, financial institutions and…

Q: It is said that open market transactions involve the sale or purchase of securities by the BSP to…

A: Central bank of country do open market transactions to increase or decrease money supply in markets.

Q: Describe Derivatives Used to Hedge Risk.

A: Definition:   Derivatives: The contract whose value derives from the fluctuation of values of the…

Q: Define Held for trading investments

A: Investment is an asset that is being purchased expecting that its value will increase with time.…

Q: What is the difference between trading securities and available for sale securities, and how are…

A: The financial instruments that are tradable and can be used to raise capital in private and public…

Q: Explain why a security is considered to be liquid and state its advantage to an investor

A: A liquid asset is a resource that can be quickly transformed within a short period of time into…