What are some of the reasons companies invest in the debt and equity securities of other...

What are some of the reasons companies invest in the debt and equity securities of other companies?

Do you think the reason for making an investment should affect the way investment is reported in the financial statements?

If so, how should that reason be established and documented? If not, explain why you believe the reason for the investment is irrelevant to how it is reported in the financial statements.

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ekkarill92 answered 2 years ago

What are some of the reasons companies invest in the debt and equity securities of other...

What are some of the reasons companies invest in the debt and equity securities of other companies? Do the reasons for making an investment affect the way the investment is reported in the financial statements? How should the reasons be established and documented?

Explain why corporations invest in stocks and debt securities.

List and explain types of Equity Securities and Debt Securities and their methods of Accounting.

During 2019, Harper Corporation for the first time decided to acquire some equity and debt securities...

During 2019, Harper Corporation for the first time decided to acquire some equity and debt securities as a means of putting some of its idle cash to work. The equity securities are classified as trading securities and the debt securities are treated as available for sale. The information for 2017 follow: Jan 1 Purchased $30,000 face value of Bradford Company, 8% bonds for $29,100 The bonds pay interest June 30 and June 30 and December 31. The bonds mature December...

(1) What are some of the reasons for the high levels of corporate debt observed today?...

(1) What are some of the reasons for the high levels of corporate debt observed today? (2) What is a Leveraged Buyout (LBO)? What role does debt play in an LBO? (3) Why is the current crisis particularly difficult for firms with large amounts of debt?

In September 2014, a U.S. investor chooses to invest $500,000 in German equity securities at a...

In September 2014, a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.25/euro. At the end of one year the spot rate is $1.45/euro. How many German equity shares will the U.S. investor acquire with his initial $500,000 investment if the cost at purchase was €50? What dollar return (in %) does an investor earn if they sell shares for €57 and the share cost at purchase was €50, given that...

a) Explain trading securities ( debt v/s equity). Give 1 example of debt and 1 of...

a) Explain trading securities ( debt v/s equity). Give 1 example of debt and 1 of equity securities? b) What is the difference between Held-To Maturity Securities v/s Available for Sale - Securities? c) Under the equity method securities describe investment in securities with controlling influence

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What are some of the reasons companies invest in the debt and equity securities of other...

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What are some of the reasons companies invest in the debt and equity securities of other...

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