What is a business book?
Business books are basically a portfolios of large financial institutions. They contain information about all securities currently held by institutions, as well as the history of all and all accounting transactions involved in the purchase and sale of securities recorded in the book. This makes them a relatively simple source that can be used to quickly monitor any investment activity carried out by institutions.
All types of investment activities are included in the business book. This level of detail is very useful in considering a type of new transaction that will affect the assets of the bank or financial institution. If the bank wants to consider creating a range/application range in conjunction with a possible purchase or sale, the transaction details recorded in the business book can be useful in the process of evaluating the proposed event. Similarly, the information contained in the book can throw some light at the positive risk associated with the investment scheme.
one of the HLAThe functions of any bank or financial institution are to cause wise investments that have a good chance of returning to their customers. Properly maintained and regularly consulted business books support this feature by providing brief details of past transactions. It also contains detail in the business book until tiny information about the assets that the bank currently holds, helping to determine the basis for future business activities.
It is important to realize that only assets that are authorized to use in active trading and investment strategies are included in the business book. Other assets that are not considered authorized for investment activities are charged in another portfolio known as a bank book. This means any securities that the bank intends to hold until the ride point of maturity is not taken into account in the business book. Progress of these long -term InvesStic is instead recorded in a bank book.
The idea of maintaining a separate accounting book for assets that can be used in investing and business activities is not limited to banks and other types of financial institutions. Private investors also often use the same approach by creating a special business book in their overall financial record. Like the book, it draws a clear boundary between the assets that can be used for trading, and those to be held in the long term can achieve the same goal.