The act of God such as accidental loss of assets due to fire, flood, earthquake etc. cannot be prevented from happening. But the sufferings can be alleviated if insurance policy is taken. Either by choice or force, businessmen quite often take insurance policy as a matter of routine. Of various types of assets available for insurance, policy on stock is very interesting because of its volatility. Estimate of loss is easier for any type of loss as movements in them are less frequent. But in case of stock, it is ever changing hour after hour. Even with the help of advanced computing techniques, tracking the quantity lost is a big problem. The businessman would have lost not only the stock but also at loss of information. To submit figures to the insurance company, the policyholder prepares statement similar to that of a trading account, which would be referred to as Memorandum Trading account.
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