Investments is included in calculation of net income along with unrealized holding gains and losses for the purpose of trading securities .
What Is a Held-For-Trading Security?
Investments in debt or equity that are bought with the intention of selling them quickly—generally in less than a year—are referred to as held-for-trading securities. The investor expects the security's value to increase throughout that time period and increase in value before they sell it.
Due to accounting requirements, businesses must categorize investments in debt or equity securities when they are made. Other options include those held to maturity or that are up for sale, in addition to those held for trading.
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