The fair value of a trading debt security is the price that would be used if the company were to sell the investment on the market.

Question

Quizplus · Accepted Answer

The fair value of a trading debt security is indeed the price that the company would receive if they were to sell the investment on the market. This is because trading securities are securities that the company plans on selling in the near future, and as such their fair value is based on their market value.

The Fair Value of a Trading Debt Security Is the Price