We will talk about Stocks in two ways during this class. There are stocks and bonds that your company will buy from other companies as an investment, and there are the stock and bonds that your company issues to raise money for the business. These are accounted for in two different ways, so it is important to clarify between the two. Stocks and Bonds that our company buys to invest will be classified as assets, while Stock and Bonds that our company issues and sells to the public are classified as Stockholder's Equity (same as Owner's Equity). First, lets discuss the stocks and bonds that are bought as an investment (assets). How do we determine whether the stocks or bonds are current assets or long term assets? How are the stocks and bonds accounted for in our books? What is the difference between trading, held to maturity, and available for sale securities?