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holding period

Definition

The length of time an asset was held (the time between the trade date of the purchase and the trade date of the sale). The holding period determines whether a gain or loss is short-term or long-term for tax purposes. A long-term holding period is one year and one day. The short-term holding period is less than one year.

Featured Tip

Investor Risk and the 5 Ways to Evaluate ItIn our opinion, the real risk an investor must assess is whether his aggregate after-tax receipts from an investment (including those he receives on sale) will, over his prospective holding period, gi ... Read more