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Equity Method
An accounting technique used by companies to assess the profits earned by their investments in other companies, recognizing income based on the share owned.
Investment Account
An account that holds securities, cash, and other investments for investors.
Statement of Financial Position
A financial statement that shows the assets, liabilities, and equity of a company at a specific point in time, also known as a balance sheet.
Unrealized Profit
Unrealized profit refers to a profit that has been earned but not yet received or recorded through a transaction, often observed with investments that have increased in value but haven't been sold.
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