TRADING SECURITIES Definition

Bookmark and Share

TRADING SECURITIES is investment in securities with the intention of selling them in the short term for a profit. These are reported at market value. Unrealized gains or losses on these investments appear in the Net Income for the period.

Learn new Accounting Terms

REGULAR SETTLEMENT is 1) For short-term or U.S. Trea­sury securities, the settlement, or payment and delivery, is the next business day after the trade date. 2) For cor­porate notes, bonds and municipal securities, settlement is in five business days. 3) For mortgage-backed securities, settlement is after the 15th of the month. 4) For Euro­dollar Certificates of Deposit, settlement is two business days after the trade date. Also known as "Regular Way.'

FUNDAMENTAL ANALYSIS is a method used to evaluate the worth of a security by studying the financial data of the issuer. Performing fundamental analysis will teach you a lot about a company, but virtually nothing about how it will perform in the stock market. Apply this analysis on two competing companies or in comparison to its industry and it becomes clearer which the best investment choice is. See FUNDAMENTALS.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.