What are the differences between held to Maturity and Held for Trading Securities and what are the instances when “tainting” is allowed

Q: What is the major difference in the accounting for a portfolio of trading securities and a portfolio…

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Q: Under which of the following markets previously issued securities are bought and sold? a. None of…

A: There are two types of market named as primary and secondary. Primary means private companies go…

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

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

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Q: Do federal securities laws apply to restricted stock, and what is their effect?

A: The restricted stocks or securities whose ownership cannot be transferred because these are…

Q: What are the Derivative Securities? Elaborate in detail the different types and transactions of…

A: Derivative Contracts are used by parties to earn profit by executing a transaction at a favorable…

Q: Why do you suppose accounting regulations requirecompanies to report paper losses or gains from…

A: This Statement establishes standards of accounting for exchange-traded futures contracts (other than…

Q: How are unrealized gains/losses on trading securities recorded?

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Q: Illustrate the effect that market interest rates have on the price of pass-through securities?

A: A pool comprising of assets that provide fixed income and are secured by several assets are known as…

Q: Why are holding gains and losses treated differently for trading securities and securities…

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Q: Define Trading securities.

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

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 are the pros and cons of dealer markets (e.g. - treasury bond markets) as compared to trading…

A: The financial market known as a "dealer market" is where dealers list the prices at which they would…

Q: How do fundamental securities differ from derivatives

A: Fundamental securities and derivatives are actively traded in financial markets. The differences…

Q: Marketable securities bought and held primarily for sale in the near term are classified as:  a)…

A: Marketable securities are securities which is unrestricted and can be bought or sold on a public…

Q: Marketable securities are accounted for at their current fair value using mark-to-market accounting.…

A: Mark-to-Market accounting is an accounting practice that helps to adjust the value of an asset on…

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: Which of the following statements is/are FALSE regarding the differences between the New issue…

A: Primary market is the part of capital market which deals in newly issued securities. It facilitates…

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: Distinguish the following financial markets. Provide examples of the type and/or nature of the…

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Q: Contrast the accounting for stock warrants with stock warrants issued with other securities.

A: Stock Warrants: Stock warrants are the rights issued to the shareholders of a company to buy…

Q: designation s to whether the equity investment is at FVPL or OCI depends upon whether the securities…

A: There are many methods of the valuations and based on the valuation there are classifications of…

Q: Briefly discuss how a transfer of securities from the available-for-sale category to the trading…

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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: In an equity swap where a liability is settled through the issuance of equity securities A.no gain…

A: According to IFRS the financial liability is renegotiated and the equity is issued to a creditor in…

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: Why are unrealized gains and losses on trading securities reported in the incomestatement?

A: Unrealized gains and losses: Trading securities are reported at their fair values. Unrealized gains…

Q: Both trading securities and available - for - sale securities are reported at their fair values…

A: Trading securities: Companies purchase bonds , shares and sell them with the motive of profit with…

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: Held-to-maturity securities:   A. All of these choices. B. include stocks as well as bonds. C. may…

A: There are two types of securities- Held-to-maturity securities: These securities are purchased in…

Q: Realized gains and losses are recorded on the incomestatement for which of the following…

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Q: What accounting treatments are appropriate for investments in equity securities without readily…

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

Q: Identify which refers to the relationship of interest and time of maturity of securities.

A: interest refers to the return that an investor gets for investing his money in the security or…

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 the fair value adjustment procedure for short-terminvestments classified as…

A: Answer: 4154-7-8DQ AID: 649 RID: 640 Short term investments are adjusted to their market value at…