Held to maturity

Definition:

Investment in securities with the intention and ability to hold them to maturity. Note that these can only be debt securities as equity has no maturity. These are reported at amortized cost and temporary fluctuations in market prices do not affect the value reported on financial statements. Also see Available for Sale, Trading Securities.

Investing Essentials


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

Term of the Day

Currency hedge

Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks).

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