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Definition:

Investment in securities where the intention is not to trade in the short-term and they may or may not be held to maturity. These are usually reported at market value. Unrealized gains or losses on these investments do not appear in Net Income but in the Accumulated Other Comprehensive Income account. Also see Held to Maturity, Trading Securities.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Pooling of interests

An accounting method for reporting acquisitions accomplished through the use of equity. The combined assets of the merged entity are consolidated using book value, as opposed to the purchase method... Read More

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