answersLogoWhite

0

Companies are required to classify securities into current and noncurrent portions based on their expected liquidity and the time frame in which they will be realized. Current securities are those that are expected to be sold or converted into cash within one year or within the company's operating cycle, whichever is longer. Noncurrent securities, on the other hand, are those intended to be held for a longer period, typically beyond one year. This classification helps stakeholders assess the company's liquidity and financial position effectively.

User Avatar

AnswerBot

2d ago

What else can I help you with?

Continue Learning about Finance

What is the Securities and Exchange Commission?

Still is, the agency is alive and well. Portions of the Glass-Steagall act, which brought it into being, were repealed or updated, but the SEC is alive and very much needed when you have 200 point per day ( crash slumps) . A US federal angency established in 1934 to supervise and regulate issues of and transactions in securities and to prosecute illegal stock manipulations


Do IPO deals only in Shares?

An Initial Public Offering (IPO) typically deals with the issuance of shares of a company to the public in a new stock issuance. The primary goal of an IPO is to raise capital by offering shares of the company to public investors. The shares sold in an IPO are portions of equity ownership in the company. When investors buy these shares, they are essentially buying a part of the company, which entitles them to a share of the profits, voting rights depending on the class of share, and a stake in the equity value of the company. While shares are the most common securities offered in an IPO, companies can also issue other types of securities as part of or alongside the IPO, such as: Convertible Securities: Sometimes, companies may offer convertible bonds or preferred shares that investors can later convert into a specified number of common shares. This can be an attractive option for investors who want the potential for conversion into equity while also receiving the fixed income characteristic of bonds. Warrants: Companies might include warrants as part of the share offering. A warrant provides the holder the right to purchase the company’s stock at a specific price at a future date. It's a way to sweeten the deal for potential investors, giving them a chance to buy more stock at a set price if the company's stock price increases. Options: Rarely, options might be offered to early investors as part of an incentive or reward scheme. These are similar to warrants but typically issued under different regulatory frameworks.


How does a hedge fund differ from a mutual fund?

Hedge funds and mutual funds are both managed portfolios in which the securities are picked by a fund manager. The securities that are picked are the ones that the manager feels will perform well and are grouped into a single portfolio. Portions of these funds are then sold to investors who are allowed to participate in the gains and losses of the holdings. However hedge funds are more aggressively managed as compared to mutual funds. They can take speculative positions in derivative securities such as options and can also short sell stocks which will increase the leverage of the fund. This means that hedge funds can also make money in an economic downturn. Mutual funds in comparison cannot take such leveraged positions and do not involve the same level of risk. Hedge funds also differ from mutual funds in their availability. They are only available to a specific group of investors with high net worth while mutual funds are available to any investors with even minimal amounts of money. There are a number of investment companies in India that invest in hedge funds as well as mutual funds of which Reliance mutual funds is a very good option.


How does the stock exchange work?

When companies need money the stock exchange allows them to sell small portions of their company to interested parties who become stockholders. The value of these stocks fluctuates as the company increases and decreases in value due to earnings reports and other information provided to the public.


How does stock exchange work?

When companies need money the stock exchange allows them to sell small portions of their company to interested parties who become stockholders. The value of these stocks fluctuates as the company increases and decreases in value due to earnings reports and other information provided to the public.

Related Questions

What is the Securities and Exchange Commission?

Still is, the agency is alive and well. Portions of the Glass-Steagall act, which brought it into being, were repealed or updated, but the SEC is alive and very much needed when you have 200 point per day ( crash slumps) . A US federal angency established in 1934 to supervise and regulate issues of and transactions in securities and to prosecute illegal stock manipulations


What is the definition of share according to 'Indian Companies Act'?

any of the equal portions into which the capital stock of a corporation is divided and ownership of which is evidenced by a stock certificate


Which is better Counting Calories or Counting Portions?

Counting calories and watching portions.


What was rationed WW2?

eating small portions of food and saving portions for what food you did have


How many portions of mash potatoes in a 2 hotel pan?

40 portions


Can you get in trouble if you have two different business insurances companies like if you have equipment floater from one company and auto and business from another?

No, Individuals and companies alike often find cost savings by splitting up portions of their coverage through different insurance companies. It's a very common practice. You just have to remember who has insured what so if you have a claim you know which insurer to to.


How many 50 gram portons are in 120 grams?

2 portions 2.4 Portions


How many portions of fruit should you eat?

3-5 portions of fruit a day


What is security and exchang commission?

Still is, the agency is alive and well. Portions of the Glass-Steagall act, which brought it into being, were repealed or updated, but the SEC is alive and very much needed when you have 200 point per day ( crash slumps) . A US federal angency established in 1934 to supervise and regulate issues of and transactions in securities and to prosecute illegal stock manipulations


What is a good general nutrition diet?

The food pyramid is great to follow to get most nutritional foods in your diet. It tells how many portions of each food category you should have in your daily diet. It includes fats, dairy, protein, fruits, vegetables, and grains.


What is the condition in which some portions of an image are in focus on the retina and other portions are blurred is called?

Its the myopia


Where are the applicable portions of the SOP required to be present?

Where are the applicable portions of the SOP required to be present with ammunition