Which unrealized gain affects a company's earnings per share?

Name: Which unrealized gain affects a company's earnings per share?
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Question

Quizplus · Accepted Answer

Unrealized gains on trading debt securities affect a company's earnings per share because they are included in net income, which is used to calculate earnings per share. Unrealized gains on held-to-maturity (HTM) and available-for-sale (AFS) debt securities do not affect earnings per share directly, as they are recorded in other comprehensive income, not net income.

Which Unrealized Gain Affects a Company's Earnings Per Share