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Held-to-Maturity Securities
(redirected from Held-to-Maturity Security)

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Held-to-Maturity Securities
Securities, especially debt securities, which an investor owns until they mature and therefore cease to exist. This entitles the holder to all coupon and other payments, as well as reimbursement for the principal amount. Because these securities are held until maturity, investors generally do not need to care about fluctuations in their prices that occur in the meantime.


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If an entity decides to sell a held-to-maturity security and reclassifies it as available-for-sale, the unrealized holding gain or loss to the transfer date should be recognized as a separate component of shareholders' equity.
Thus, the sale or transfer of a held-to-maturity security due to one of the following changes in circumstances should not be considered inconsistent with its original classification: * Evidence of a significant deterioration in the issuer's creditworthiness.
 
 
 
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