Securities purchased to provide short-term profits from short-term price movements are reported as:

Question

Quizplus · Accepted Answer

Securities purchased for short-term profits from short-term price movements are classified as trading account assets. These assets are held with the intention of selling them within a short time frame to benefit from the price fluctuations. Such investments are made by trading desks at banks and other financial institutions. The gains or losses from these securities are recorded in the income statement.

Securities Purchased to Provide Short-Term Profits from Short-Term Price Movements