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Held-to-Maturity Security

[held-too-muh-CHUR-i-tee SEH-kyoor-i-tee]

What is the definition of Held-to-Maturity Security?
A debt security that a company has the intent and ability to hold until its maturity date, at which point it is expected to be paid in full.
Using Held-to-Maturity Security in an Example

A company purchases corporate bonds with the intention of holding them until their maturity date ten years from now. These bonds are classified as held-to-maturity securities on the company's balance sheet, indicating that the company plans to hold these bonds and not sell them in the market prior to their maturity.

Using Held-to-Maturity Security in a sentence

During the financial review, the CFO confirmed that the bonds listed under held-to-maturity securities will be retained until their due dates for redemption.

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In the context of mortgage-backed securities, half-life refers to the point in time at which half of the principal amount of the security has been repaid.
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A transaction or series of transactions undertaken to reduce the risk of an investment, often by taking an offsetting position in a related security.
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High-Premium Convertible Debenture

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Historical Cost

The original cost of an asset to an entity at the time of its acquisition, recorded on the financial statements.
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Holding Period

The duration between the acquisition and the sale or disposition of an asset by a taxpayer.
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A financial analysis technique that compares line items in financial statements over a series of periods, calculating both the dollar amount and percentage changes from one period to the next.
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