Check out 'Doctor Strange' in 3D, now in theaters! Thanks to everyone at Stereo D for all their great work.
All marketable debt securities are held at cost on a company's balance sheet as a current asset, until a gain or loss is realized upon the sale of the debt instrument. Marketable debt securities are held as short-term investments and are expected to be sold within one year. If a debt security is expected to be held for longer than one year, it should be classified as a long-term investment on the company's balance sheet.
Marketable investment securities are classified as one of the following: 1  Held to Maturity Securities: Debt securities that are acquired with the intention of holding them until maturity. 2  Trading Securities: Debt and equity securities that are acquired with the intention to trade them in the near term for a profit. Trading securities are reported on the balance sheet at fair value. Unrealized gains and losses before the securities are sold are reported in the income statement. Available for Sale Securities: are debt and equity securities that are not expected to be held until maturity or sold in the near term.