holding period
Time before selling
A holding period is the length of time an investor owns an asset before selling it.
The term matters primarily for tax purposes: in the U.S., assets held longer than one year qualify for lower long-term capital gains rates.
What's your holding period on those shares?
The concept applies to stocks, real estate, and other investments.
- stock ownershipPossessing corporate equity
- sitting tightRemaining in place patiently
- short-term gainsProfits from brief investments
- capital gains taxLevy on asset sale profits
- tax deferralDelayed payment to government
tax basis · long-term gains · paper profits · portfolio management · dividend yield · cost basis · taxable income · home equity · asset allocation · risk assessment · rental income · cash flow analysis · mutual funds · tax optimization · deed transfer · delayed gratification · operational efficiency · zoning laws
- time periodsday, year, month, week, hour
- animal shelteranimal shelter, shelter worker, shelter cat, animal control, humane society
- time horizonsshort-term, long-term, immediate, near-term, mid-term
- private equityleveraged buyout, leveraged buyouts, LBO, buyouts, general partner
- investment taxescapital gains, capital gains tax, dividends, investment income, capital losses
- stock optionsstock options, strike price, vesting, vesting schedule, ISO
holding periodpoint of sale
Transaction completion location
liquidation · divestment · disposal · exit point · market entry
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