[Char143]

I am having trouble understanding what the difference is between the two (they seem like the same thing to me).. any help would be appreciated (some examples would be great).

AUD (2/16)-84
REG (05/16)-69 Retake (7/16)-79 (ty ninja MCQ)
BEC-TBD
FAR-9/8/16

[mckan514w]

Kind of think of them like short and long-term assets…

Trading securities are short term the company typically is seeking to maximize profits through trading- so its not like they anticipate really holding on to the security for any length of time…

Available for sale securities are held indefinitely- they may or may not be sold this is kind of your “default” classification – the company buys the security and holds on to it.. if they need to they can sell it….

So as for an example think of a day trading account versus a retirement account… day trading you buy and sell securities daily they come in they go out- you have no other purpose of buying the security except to sell it for a profit…

A retirement account however you are looking for long term growth so you will buy a security to hold in there- typically one that will pay a dividend or you anticipate increasing in value at some point down the road. You are free to sell it at anytime however your goal is not necessarily the benefit of selling it…

and they ask me why I drink...

FAR- 61-next time I'll ask for lube instead of a calculator
REG-75- Never been so happy to see such a low grade
BEC- 8/11
AUD- 9/2

[Char143]

Thank you, that really helped!

AUD (2/16)-84
REG (05/16)-69 Retake (7/16)-79 (ty ninja MCQ)
BEC-TBD
FAR-9/8/16

[Author]

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