Trading securities: Debt securities which are held with the intention to sell in the short term for profit are called trading securities. Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are known as available-for-sale securities. Fair value: Fair value is a selling price which is agreed by the buyer and seller. Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain. An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss. To determine the effect of the transfer of securities from the available-for-sale category to the trading category on stockholder’s equity and income.

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Chapter 17, Problem 23Q

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Trading securities: Debt securities which are held with the intention to sell in the short term for profit are called trading securities.

Available-for-sale securities: A debt or equity securities which are purchased with the intention of selling it before its maturity, or selling prior to the longest time period in case if security is without its maturity are known as available-for-sale securities.

Fair value: Fair value is a selling price which is agreed by the buyer and seller.

Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.

An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.

To determine the effect of the transfer of securities from the available-for-sale category to the trading category on stockholder’s equity and income.

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