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<p>[QUOTE=&quot;Cloudsweeper99, post: 714440, member: 3011&quot;]Let’s try to explain it to you by example of a company that does this as a major part of their business, Goldman Sachs.&nbsp; If you go to the attached link to the 10Q report filed for the quarter ending June, 2009, on page 11 in the notes to consolidated financial statements you will find the following statement.</p><p><br /></p><p><a href="http://www2.goldmansachs.com/our-firm/investors/financials/current/10q/10q-2009-2q.pdf" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www2.goldmansachs.com/our-firm/investors/financials/current/10q/10q-2009-2q.pdf" rel="nofollow">http://www2.goldmansachs.com/our-firm/investors/financials/current/10q/10q-2009-2q.pdf</a></p><p><br /></p><p>“Related unrealized gains and losses are generally recognized in ‘Trading and principal investments’ in the condensed consolidated statement of net earnings.”</p><p><br /></p><p>If you prefer a description of the accounting treatment involved, we have:</p><p><br /></p><p>“Debt and equity investments classified as trading securities are those which were bought for the purpose of selling them within a short time of their purchase. These investments are considered short-term assets and are revalued at each balance sheet date to their current fair market value. Any gains or losses due to changes in fair market value during the period are reported as gains or losses on the income statement”</p><p><br /></p><p>Maybe things were different when your high school teacher explained this to you, but the world has moved on to a more comprehensive definition of net income and profit.&nbsp; Common sense and best practice accounting both recognize that this is a PROFIT.[/QUOTE]</p><p><br /></p>

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