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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Short-Term Capital Gain

Definition:

When you make money on an investment you’ve had for shorter than a specific amount of time (usually a year and a day), they're known as short-term capital gains. You can expect to pay taxes on this gain, and you’ll pay higher capital taxes than someone with a long-term capital gain, so it can make sense for you to hang onto your investments.