Reading Financial Reports For Dummies
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Marketable securities are a type of liquid asset on the balance sheet of a financial report, meaning they can easily be converted to cash. They include holdings such as stocks, bonds, and other securities that are bought and sold daily.

Securities that a company buys primarily as a place to hold on to assets until the company decides how to use the money for its operations or growth are considered trading securities. Marketable securities held as current assets fit in this category. A company must report these at their fair value based on the market value of the stock or bond on the day the company prepares its financial report.

A firm must report any unrealized losses or gains — changes in the value of a holding that it hasn't sold — on marketable securities on its balance sheet to show the impact of those losses or gains on the company's earnings. The amount you find on the balance sheet is the net marketable value, the book value of the securities adjusted for any gains or losses that haven't been realized.

The balance sheet is the show for general consumption, but the notes to the financial statements are where you find the small print that most people don't read. You find lots of juicy details in the notes that you don't want to miss.

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Lita Epstein, who earned her MBA from Emory University’s Goizueta Business School, enjoys helping people develop good financial, investing and tax-planning skills.
While getting her MBA, Lita worked as a teaching assistant for the financial accounting department and ran the accounting lab. After completing her MBA, she managed finances for a small nonprofit organization and for the facilities management section of a large medical clinic.
She designs and teaches online courses on topics such as investing for retirement, getting ready for tax time and finance and investing for women. She’s written over 20 books including Reading Financial Reports For Dummies and Trading For Dummies.
Lita was the content director for a financial services Web site, MostChoice.com, and managed the Web site, Investing for Women. As a Congressional press secretary, Lita gained firsthand knowledge about how to work within and around the Federal bureaucracy, which gives her great insight into how government programs work. In the past, Lita has been a daily newspaper reporter, magazine editor, and fundraiser for the international activities of former President Jimmy Carter through The Carter Center.

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