Trading account assets refer to a separate account managed by

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

s that buy (

underwriting Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability ...

) U.S. government securities and other

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

for their own trading account or for resale at a profit to other banks and to the public, rather than for investment in the bank's own investment portfolio. Trading assets are segregated from the investment portfolio. They are recorded separately when acquired until they are disposed of or sold, and are then recorded at the price in effect when these securities are purchased or sold.

Trading Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market (economics), market. Traders generally negotiate throu ...

assets held for other banks are marked to market (adjusted to current

market value Market value or OMV (open market valuation) is the price at which an asset would trade in a competitive auction setting. Market value is often used interchangeably with ''open market value'', ''fair value'' or '' fair market value'', although t ...

) while held by a bank.

References

{{DEFAULTSORT:Trading Account Assets Securities (finance) Business terms