An Unrealized Loss for an Equity Securities Investment Classified as Trading

question 1

True/False

An unrealized loss for an equity securities investment classified as trading securities does not reduce net income.

---

Definitions:

Reinforcement Theory

A theory in psychology that posits behavior is motivated by its consequences, through rewards or punishments.

Nonbinding Price Floor

A minimum price set by the government that is below the equilibrium price, having no effect on the market price or quantity sold.

Consumers

Consumers are individuals or entities that use or consume goods and services for personal use, not for manufacturing or resale.

Producers

Individuals or entities that create, manufacture, or grow products for the purpose of selling them to consumers or other businesses.