Non-Trading Securities Are Securities Bought and Held Primarily for Sale

question 27

True/False

Non-trading securities are securities bought and held primarily for sale in the near term to generate income on short-term price differences.

---

Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but does not fully control it.

Ownership Percentage

The share or portion of a company that is owned by an individual or entity, typically expressed as a percentage of total outstanding shares.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.