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Cash Securities Operations processes all activities related to the settlement of a trade when the Bank or one of its customers buys or sells a security. Core responsibilities include confirming the trade with the client, Bank or broker, managing delivery and receipt of the security and cash, as well as the recording of the transaction on the firm's books and records. Cash Securities Operations processes all activities related to the settlement of a trade when the Bank or one of its customers buys or sells a security. Core responsibilities include confirming the trade with the client, Bank or broker, managing delivery and receipt of the security and cash, as well as the recording of the transaction on the firm's books and records.
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An increase in investments in long term securities will?
decrease cash flow from investing activities
How does Selling marketable securities for cash affect net working capital?
DECREASES
Is a certificate of deposit considered cash?
No. Certificates of deposit should be classified as cash equivalents or short-term investments. This is because there are usually restrictions or penalties on these securities when they are converted to cash.
Why does the purchase of an item classified as a cash equivalent not appear on the statement of cash flows as an investing activity?
A cash equivalent is a short-term investment in marketable securities that can be sold very quickly (three days or less in an active exchange); its purpose is to provide some level of return on excess cash that would otherwise be sitting in a bank account. To that extent that the cash equivalent can be thought of as operating cash on hand, and not as an investment. If, on the other hand, a company bought marketable securities to hold for investment purposes over the long-term that would be investing. Given that the purchase of cash equivalents is related to operating activities it is accounted for in cash flows from operating activities. The investment in marketable securities "held for investment" would be treated as an investing activity.
What is the meaning of 'statutory liquidity ratio'?
It is the amount which a bank has to maintain in the form of cash, gold or approved securities. it is presently 25%.
What is the treatment of interest received on marketable securities in cash flow statement?
Interest received on marketable securities is shown as an increase of cash from investing activities in cash flow statement.
What is the method of Accounting for Securities where the transactions are recorded on the date the securities settle by delivery or receipt of the securities and the payment of cash known as?
settlement method
What is the method of accounting for securities where the transactions are recorded on the date the securities settled by delivery or receipt of the securities and the payment of cash known as?
settlement method
What is the method of accounting for securities where the transactions are recorded on the date the securities settle by delivery or receipt of of the securities and the payment of cash known as?
settlement method
What is the journal entry of purchased government securities?
[Debit] Investment in Govt. Securities [Credit] Cash / bank
Why does Marketable securities located on a balance sheet?
Marketable securities are assets of company which can be converted immediately to acquire cash as and when needed.
Why would a company invest in securities what provide no current cash flows?
A company may invest in securities that do not provide current cash flows for various reasons. These securities could offer potential future cash flows or capital appreciation. Additionally, investing in such securities can diversify the company's investment portfolio and provide avenues for long-term growth. Furthermore, it allows the company to strategically allocate excess cash or idle funds to create further value.
What section in the statement of cash flows for reporting the receipt of cash dividenDs from investments in securities is what?
Operating Activities ;)
What is a buy back of securities?
In a security offering the company sells its securities to the public for a consideration[cash] and transfers the securities in their name.Now when the company has enough funds and if so desires to, can start the process of buyback of securities by quoting a price of the securities to the holders.
An increase in investments in long term securities will?
decrease cash flow from investing activities
How does Selling marketable securities for cash affect net working capital?
DECREASES
Is your cash safe in Scottrade account?
Scottrade is a member of the Securities Investor Protection Corporation (SIPC), which protects securities held by investors up to $500,000, including a maximum of $100,000 in cash claims*. A brochure with the details of SIPC protection is available at www.sipc.org There is a good chance your cash at Scottrade will be involved in the bank sweep program allowing you to pick up FDIC insurance rather than FDIC eliminating issues related to the disclaimer below. If you are unsure call your local Scottrade branch.*In order for cash to be covered by SIPC or excess SIPC, cash held in an account must be for the purpose of, or as a result of, securities transactions. Cash held in a securities account for the purpose of earning interest, which was not the result of a securities transaction, may not be covered by SIPC or excess SIPC.
