3. Fair Value Measurement
The fair value measurement level within the fair value hierarchy of an asset or liability is based on the lowest level of any input that is significant to the fair market value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
The following table sets forth by Level, within the fair value hierarchy, the Company’s assets at fair value as of September 30, 2020:
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
Stocks and ETFs |
|
$ |
1,332,540 |
|
|
— |
|
|
— |
|
$ |
1,332,540 |
Fixed and Preferred Securities |
|
$ |
2,862,830 |
|
|
— |
|
|
— |
|
$ |
2,862,830 |
Mutual Funds |
|
$ |
23,493,424 |
|
|
— |
|
|
— |
|
$ |
23,493,424 |
Total Investments |
|
$ |
27,688,794 |
|
|
— |
|
|
— |
|
$ |
27,688,794 |
Real Estate Owned |
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|
|
|
|
|
|
$ |
7,523,584 |
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$ |
7,523,584 |
Following is a description of the methodologies used for assets measured at fair value:
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Stocks and ETFs: Valued at the closing price reported on the active market on which such securities are traded. |
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Fixed and Preferred Securities: Valued at the closing price reported on the active market on which such securities are traded. |
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Mutual funds: Valued at the daily closing price reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the Securities and Exchange Commission (the “SEC”). These funds are required to publish their daily net asset values and to transact at that price. The mutual funds held by the Company are deemed to be actively traded. |
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Real estate owned: The Company estimates fair values of real estate owned using market information such as recent sales contracts, appraisals, recent sales offers, assessed values or discounted cash value models. |
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