You are the Investment Manager at King Midas Corporation. You and your Securities Traders are planning to buy Debt Investments. In addition, due to inflation and the political climate, the prices of these investments fluctuate a lot from day-to-day.

You are wondering, given the volatility of the Debt Investments values, what is the best classification for these Debt Investments when they are purchased by the corporation.

Your Securities Traders strongly believe that they should be classified as Trading.

1. Post an original response to the scenario above as to whether you agree or disagree with the position of the Securities Traders to classify the Debt Investments as Trading. You need to explain in detail, give examples if needed, to justify your agreement or disagreement. Once you post your response, you will be able to see your classmates responses. (12 Points)