As a financial investment company, with its sole purpose is to invest in other businesses (public traded companies) by trading (purchasing and selling) the targeted stocks (this activity is unrelated to issuing its own common stocks or offering stock repurchase program), which category in accounting does such activity fall under?
I know stocks don't fall under intangible asset, as it is actually a claim on another corporate asset, which is both tangible and intangible. However, for our purpose, as a financial investment (trading stocks), does owning stock fall under inventory category?
I am more or less a student in accounting, and I just have this question in my mind. Thanks for reading.
I know stocks don't fall under intangible asset, as it is actually a claim on another corporate asset, which is both tangible and intangible. However, for our purpose, as a financial investment (trading stocks), does owning stock fall under inventory category?
I am more or less a student in accounting, and I just have this question in my mind. Thanks for reading.