Marketable Securities

3 Months Ended

Oct. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

3.

Marketable Securities:

The Company categorizes marketable securities as either trading, available-for-sale or held-to-maturity. Trading securities are carried at fair value with unrealized gains and losses included in income. Available-for-sale securities are carried at fair value measurements using quoted prices in active markets for identical assets or liabilities with unrealized gains and losses recorded as a separate component of shareholders' equity. Held-to-maturity securities are carried at amortized cost. Dividends and interest income are accrued as earned. Realized gains and losses are determined on a specific identification basis. The Company reviews marketable securities for impairment whenever circumstances and situations change such that there is an indication that the carrying amounts may not be recovered. The Company did not classify any securities as trading or held to maturity during the three months ended October 31, 2016 and July 31, 2016.

The Company follows GAAP which establishes a fair value hierarchy that prioritizes the valuation techniques and creates the following three broad levels, with Level 1 valuation being the highest priority:

Level 1 valuation inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date (e.g., equity securities traded on the New York Stock Exchange).

Level 2 valuation inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted market prices of similar assets or liabilities in active markets, or quoted market prices for identical or similar assets or liabilities in markets that are not active).

Level 3 valuation inputs are unobservable (e.g., an entity’s own data) and should be used to measure fair value to the extent that observable inputs are not available.

Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used at October 31, 2016 and July 31, 2016.

Equity securities are valued at the closing price reported on the active market on which the individual securities are traded that the Company has access to.

Mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Company are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (“NAV”) and to transact at that price. The mutual funds held by the Company are deemed to be actively traded.

In accordance with the provisions of Fair Value Measurements, the following are the Company's financial assets measured on a recurring basis presented at fair value.

	Fair value measurements at reporting date
	Total								Total
	October 31,								July 31,
Description	2016		Level 1		Level 2		Level 3		2016		Level 1		Level 2		Level 3
Assets:
Marketable securities -
available-for-sale	$	2,002,818	$	2,002,818	$	–	$	–	$	2,062,205	$	2,062,205	$	–	$	–

As of October 31, 2016 and July 31, 2016, the Company's marketable securities were classified as follows:

	October 31, 2016								July 31, 2016
			Gross		Gross						Gross		Gross
			Unrealized		Unrealized		Fair				Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Noncurrent:
Available-for-sale:
Mutual funds	$	552,628	$	134,648	$	–	$	687,276	$	551,573	$	143,026	$	–	$	694,599
Equity securities		1,116,639		200,736		1,833		1,315,542		1,110,091		258,869		1,354		1,367,606
	$	1,669,267	$	335,384	$	1,833	$	2,002,818	$	1,661,664	$	401,895	$	1,354	$	2,062,205

The Company's debt and equity securities, gross unrealized losses and fair value, aggregated by investment category and length of time that the investment securities have been in a continuous unrealized loss position are as follows:

	October 31, 2016				July 31, 2016
			Less Than				Less Than
	Fair Value		12 Months		Fair Value		12 Months
Corporate equity securities	$	116,396	$	1,833	$	120,288	$	1,354

Investment income consists of the following:

	Three Months Ended
	October 31
	2016			2015
Loss on sale of marketable securities	$	(7,421	)	$	–
Interest income		3,304			909
Dividend income		7,278			6,313
Total	$	3,161		$	7,222