Question
Match each of the definitions that follow with the appropriate terms (a-j). a. debt securities b. equity securities c. investor d. investee e. cost method
Match each of the definitions that follow with the appropriate terms (a-j). a. debt securities b. equity securities c. investor d. investee e. cost method f. trading securities g. available-for-sale securities h. held-to-maturity securities i. equity method j. business combiination
= debt and equity securities purchased and sold to earn short-term profits from the changes in the market price
=preferred and common stock that represent ownership in a company and do not have a fixed maturity date
=the method of reporting an investment that represents less than 20% of the voting stock of another company
=when using this, dividends are treated as a reduction of the investment
=notes and bonds that pay interest and have a fixed maturity
=debt investments that a company intends to keep until their maturity date
=securities not held for trading or to maturity or other strategic reasons
=the company investing in another companys sock
=what occurs when a company purchase 50% or more of another companys stock
=the company whose stock is purchased by another entity
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