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Asked Dec 20, 2019
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What is the major difference in the accounting for a portfolio of trading securities and a portfolio of available-for-sale securities?

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Trading securities: These are short-term investments in debt and equity securities with an intention of trading and earning profits due to changes in market prices. Available-for-sale securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

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