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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Holding Period

Definition:

The tax man is interested in how long you have your stocks and other securities before you trade because you get taxed differently depending on whether you keep 'em for a short term or hold onto 'em for a longer time.

The time you keep your stock before selling is known as the holding period. If you keep them for at least a year (and a day, weirdly) you get taxed a lot less. If you have them for less than a year, the money you make is treated like income and you pay a lot more. So you might want to show your stocks a little love and keep 'em around to cuddle for a while.